Big Picture: During yesterday’s session, Ethereum remained in the hands of sellers, who exploited the situation and pulled the price towards the channel supports of the descending channel formation. Furthermore, yesterday’s session saw one of the highest volumes since August 2023, indicating that a probable change of hands has occurred. This is supported by the fact that the largest volume profile was observed towards the session lows. Going forward, rebounding above 1620 to 1630 is critical for bulls to recoup some power and reverse the current selling scenario.
On the Upside Ethereum is set to re-test the 1620 to 1630 levels. This is an important point in the session. Any evidence of strength or potential stronghold over this resistance zone might spark panic short-coverings, propelling price towards 1660 in the blink of an eye, with room for 1680 to 1700 levels or higher.
On the Downside Ethereum has the opportunity to re-establish a few intra-day supports once again. The initial support could be established at 1605 to 1595 levels followed by 1585 to 1575. If these levels can be turned into supports, Ethereum would avoid re-testing the recent lows. However, if bulls fail in surpassing higher and turning these levels into supports, then Ethereum is expected to get re-exposed for 1555 and 1520 levels.