1-Day Analysis:
Big Picture: Ethereum lost its channel-based support, resulting in a bloodbath. Ethereum was displaying various indicators of weakness on lower-time frames, indicating that such a move was imminent. However, Ethereum is presently re-testing the 2020 Range low support level. This level is critical and must be maintained in order to keep Ethereum bullish on a daily basis. If this support is lost, the re-tests will be extended to lower supports.
On the Upside several new resistances are emerging. Initial resistance is seen at 1790 followed by 1820. Both of these levels have a lot of supply for the day and will be difficult to surpass. If Ethereum can restore momentum above 1820, this selling pressure will be eased, and a recovery toward higher levels will be probable. Initially aiming for 1865, then 1920, and possibly 2015.
On the Downside 1735 is now providing solid intraday support. However, between 1735 and 1700, there are important support levels that can sustain and absorb severe selling. If Ethereum can maintain this support, price should see aggressive short-covering. However, losing this level of support will be even more damaging, pushing the sell-off further towards 1650, followed by 1570.
