12-Hour Analysis:
Big Picture: Ethereum showed tremendous strength during Friday’s session; however, bulls required the continuation candle, which not only failed but also established a hanging man pattern on the daily time-frame, quickly halting the momentum, and Ethereum similarly entered rounds of profit-taking and lower support re-tests. Moving forward, the hanging man pattern has provided some short-term pressure for the pair and may put bulls under some pressure in the short run.
On the Upside despite breakout momentum and high volumes, 2320 proved to be far too powerful for the bulls. There is minor intra-day resistance near the 2300 level for the session, but the key barrier for the session is at the 2320 mark. Acceptance over this level is required for price to advance higher into the 2380 to 2405 range, followed by the 2480 to 2500 range.
On the Downside Ethereum is paying attention and taking excellent support between 2270 to 2255 levels. This range was historically a key barrier for the bulls, and after price broke through it, there was a strong surge higher. As a result, Ethereum is likely to use this area as session support. Furthermore, effectively establishing strong supports around this zone will benefit the bulls. If they fail to hold this zone, price is anticipated to fall first into the 12-Hourly EMA-50 at 2220.
