ETH-“Short-Coverings Possible”

12-Hour Analysis:

Big Picture: The inability of a bullish breakout and low volumes allowed sellers to further impact Ethereum’s price. Buyers have been under pressure to defend the short-term range lows for some time. They were successful in securing those supports for an extended period of time, but their failure to convert that strength into upward expansion resulted in weariness, exposing the lower supports. Going ahead, Ethereum may get some partial relief in the upcoming sessions, but any advance will result in selling pressure again unless the 1920 level is breached. As a result, until a definitive breach of 1920 occurs, any upside should be exploited for profit-taking.

On the Upside Ethereum is now facing a number of challenges. Any early attempts are expected to be limited by previous important support levels of 1780 to 1800. These barrier levels will make it difficult for price to break past them, even more on early tries. Breaking through 1800 would send Ethereum back towards 1820 to 1830 levels, where another major barrier exists.  

On the Downside since late March, Ethereum has been trading at its lowest level. As Ethereum challenged the lower support levels in the last few candles, a sudden rise in demand was observed, resulting in long lower shadow candles. Such candle patterns have the potential to spark waves of short-coverings. However, unless the main resistance is breached, any upside will only be a corrective phase. Key support for the session is at 1722, followed by 1680.