1-Day Analysis:
Big Picture: Ethereum was able to break over the resistance range of 1620 to 1630 over the weekend, and the price ended the week above the EMA-200 level. Furthermore, the weekly candle closed with a Long-Legged Doji, symbolizing the players’ ongoing struggle and uncertainty. The ongoing strength for Ethereum, could lead to significant short-coverings in the upcoming sessions. Sellers must limit strength over 1660 in order to slow down this growing momentum.
On the Upside Price has risen over the 1620 – 1630 level and is now going for the 1660 resistance zone. The present strength is an unfavorable sign for short position holders, and it may result in some panic short covering if this momentum continues over the next few hours. This might result in an abrupt price spike towards 1680-1700 levels, with room for even higher levels around 1720-1730.
On the Downside Over the weekend, Ethereum found support at 1620. A few candles were able to wick below this level, but none of them were able to close below this level on a 4-hourly time-frame, which is an impressive development. Furthermore, any candles that managed to wick lower drew higher volumes, indicating that active buyers are once again beginning to position themselves. Holding 1630 to 1620 as supports would greatly favor the bullish climb; however, any hints of weakness below this level would result in a fresh wave of selling.
