1-Day Analysis:
Big Picture: For the previous several sessions, Ethereum has been attempting to break through the resistance of 1660, but no significant progress has been made. If Ethereum can maintain its immediate supporting zone, the congestion ahead is expected to be overtaken with price gaining additional momentum, enabling price to go for higher levels. Moreover, a possible AB=CD pattern may materialize.
On the Upside the EMA-26, along with the horizontal resistance of 1660, has created plenty of problems for the bulls. This EMA has been challenged four times in the previous five trading sessions and has successfully rejected price each time. The EMA resistance, followed by the 1660 barrier, demands bulls put in additional effort to break through this region. If this is effective, the price may strive for the levels of 1720 to 1730, where the AB=CD pattern will see its completion.
On the Downside as the price failed to break through the previous obstacles, Ethereum experienced heavy selling before the session ended. The 1620 support level effectively repelled that selling. The level not only stopped the selling, but also showed an impressive bounce back up. Holding onto this zone will be significant and beneficial for Ethereum in the coming hours to sessions. Holding this zone would reaffirm higher levels in upcoming sessions. If Ethereum falls below 1620, its momentum is likely to slow down.
