ETH-“Supports under Pressure”

1-Day Analysis:

Big Picture: The unveiling of Ethereum’s spot ETF news yesterday sparked rapid interest, causing the price to challenge the intraday barrier level in the blink of an eye. Having said that, the positive trigger was also unable to launch anything sustainable on the buyers’ end. The news-led spike reflects more of short-covering than new buying activity. This indicates that the bulls are still weak overall and will need to do a lot to overturn this weak sentiment.

On the Upside Yesterday’s initial surge tested the resistance level of 1660, but failed to build any sustainable acceptance above it, resulting in yet another long-legged Doji formation, signaling the continuation of uncertain price behavior. Ethereum, too, has several obstacles that make it difficult for bulls to build a sustained advantage. For the session, the resistance continues at 1660, followed by 1680 and 1700. Any strength over these levels would, at most, partially extend the corrective period.

On the Downside the horizontal and weekly dynamic support levels have frequently caused brief squeezes upward. These supports are still holding firm, but Ethereum’s failure to hang onto these surges remains a cause of concern. If bulls continue to fail in such manner, the existing supporting range of 1630 to 1620 could eventually collapse, resulting in further declines for the pair in the region of 1605 to 1595 levels initially, with room for further dips.