1-Day Analysis:
Big Picture: Since its huge surge from psychological lows to the 2000 mark, Ethereum has entered its first major corrective period. It is now holding at the 0.50 Fibonacci level and has taken strong support from this area. The next few sessions will be crucial for bulls as Ethereum attempts the 0.50 and 0.618 Fibonacci levels. These are critical re-test supports, and maintaining them will be critical for the next leg. Holding these ranges successfully could potentially call upon AB=CD leg.
On the Upside Ethereum has once again been rejected in the 1680-1700 range. Unless and until the bulls retake this level, the upside will be restricted. This previous support is now functioning as a powerful barrier. Ethereum need persistent strength over 1700 in order to advance to higher levels, which are at 1760, 1800, and 1870. Remember that these levels will only be deemed bearish re-tests till strength above 1870 is confirmed.
On the Downside the first intra-day support is identified at 1610, followed by 1590. These supports are weaker since they are based on a shorter time horizon. Overall, substantial supports can be seen between 1550 and 1520. If these supports fail, the lower support levels at 1425 and 1365 will be exposed. When tested, anticipate heavy rounds of short-coverings and possibly fresh-buying as well.
