12-Hour Analysis: Big Picture: Yesterday’s volume for Ethereum was the highest since July 14th. Furthermore, Ethereum developed a hammer candlestick pattern on the daily chart, indicating possible upward potential. However, the continuation has not yet been initiated, and the price is displaying an instant indication of pressure after a bullish candlestick. Ethereum’s indecision has been going on for a few weeks to months now, and it appears to be continuing. The RSI indicator has been oscillating between 70 and 30 on the 12-hourly chart since mid-March, confirming the range-bound situation and lack of trending momentum.
On the Upside bulls yesterday’s strong surge got capped by the EMA-50 level just below the 1880 horizontal resistance mark. Since July 21st, the EMA-50 has provided significant resistance, and no candle has been able to close even halfway above this level. This will be a critical resistance level for Ethereum to overcome in order to extend its upside potential to higher levels.
On the Downside the support levels of 1830 to 1820 once again stepped up and triggered a strong intra-day reversal for Ethereum. Despite several reversals from this level, bulls have consistently failed in pulling any momentum beyond the 1880 mark. This remains a sign of concern and puts current levels of support at risk. There is still plenty of protection at the support levels, but if sellers are able to break through this support zone, Ethereum is predicted to take support from 1790 to 1770, which is an even stronger support region.
