12-Hour Analysis:
Big Picture: Ethereum is about to break through the ascending channel as well as the horizontal intraday support. Price is currently facing pressure from aggressive sellers who seem to be re-aiming for the supporting region below. This was inevitable owing to Ethereum’s failure to break past the congestion zone. Currently, sellers are active and aiming to push prices below the intra-day support level in hopes of hitting the key level below. Nonetheless, late sellers are advised to manage risk since intra-day short-coverings are still possible.
On the Upside in the event of a short-squeeze, Ethereum may re-test the 1595-1605 zone. Moreover, any intra-day price spike is expected to be limited in this region, potentially leading to a re-selling event. If sellers are to maintain their advantage over the trend, this level must not be surpassed with strength; otherwise, a panic short-squeeze from bulls could happen, resulting in a price surge back into 1650 to 1680 levels within an extremely short time frame.
On the Downside sellers are attempting to break through the intraday support level at 1565. This level is currently backed by both the horizontal and dynamic supports. Breach of this support level would be another intra-day setback for the bulls and another success for the sellers, who would then maintain their selling pressure and drive prices further down into the candle’s low of 1540, and possibly lower into the 1500 area. Strong short-coverings are expected at this level.
