12-Hour Analysis:
Big Picture: Ethereum has dropped to its lowest level since March 12th, 2023. Ethereum has been testing the short-term range lows and printing lengthy lower wicks in recent days. However, it was also emphasized that this buying activity on supports required higher-level follow-up from bulls. As bulls failed to generate any follow-ons, the decline continued, and Ethereum reached its lowest level in over 215 days. Bulls have been unable show any strength throughout the price spike, thus the weakness remains.
On the Upside there is small resistance at 1550, but if Ethereum begins to show some strength above 1550, a rapid move back into 1580, followed by 1600, is certainly possible from here. However, with the bulls’ grasp loosened, any short-term rise should be capitalized for immediate profit-taking.
On the Downside following the loss of the 1550 support level, a decline towards 1520 was observed, followed by an immediate bullish rebound. Some intraday short covering is visible around the 1520 support level, but bulls will need greater strength to reverse this continued selling spree. Meanwhile, if the 1520 support level is breached, Ethereum is expected to re-test the channel low between 1485 to 1480 levels.
