1-Day Analysis:
Big Picture: For Ethereum, 1280 was viewed as a crucial S/R threshold. On a daily time-frame, Ethereum was unable to hold it with aggression, instead established a triple top formation, which caused aggressive intra-day selling, sending prices lower as the lower time frame EMA support was also violated. Ethereum, on the other hand, has numerous decent supports along the way, making it difficult for sellers as well. Higher volatility is predicted, and rapid scalping possibilities for both sides will emerge.
On the Upside between 1280 and 1300, Ethereum experienced severe congestion. Major horizontal and dynamic resistances dominate this level. Ethereum will encounter early resistance around 1240, followed by 1280 once again. Multiple resistances exist between 1280 and 1300, making it difficult for price to break through. Unless and until this zone is acknowledged as a support, the upside potential is limited.
On the Downside Ethereum is now receiving good support between 1235 and 1220. The immediate reaction has been favorable, and intra-day short-coverings are likely if Ethereum can hold onto this region for a bit longer. However, if this is lost, price will be exposed to 1205 and may drop lower to the 1170-1165 range. This is a critical support level for Ethereum to maintain its positive short-term presence.
