12-Hour Analysis:
Big Picture: Ethereum has been trailing in terms of strength in recent weeks. Meanwhile, the bulls’ rally from yesterday proved unsustainable, prompting some aggressive profit-taking in the intraday session. Bulls, on the other hand, are seeking to re-affirm the lower supports; if successful, this might result in some powerful bullish waves upward aiming for the previous 52-weeks high.
On the Upside on the daily time-frame there is still considerable congestion between 1800 and 1830. Yesterday, this identical level triggered some profit-taking, dragging the lower price below the 1800 barrier. This range will be the bulls’ first test going forward. If price can establish strength above this range, it will become bullish in the short term, allowing for an ascent towards 1880, followed by 1920 to 1930 levels.
On the Downside price has now challenged the 1760 support level twice, and both times a significant reaction has been observed. Between 1760 to 1730, Ethereum has several solid rounds of protection. If this range is turned into a firm support, price is unlikely to test lower supports. If bulls lose immediate support, the decline will then continue lower into 1715 to 1700 levels. Furthermore, substantial demand is anticipated to be developed on these supports.
