1-Day Analysis:
Big Picture: Ethereum’s key EMAs of 50 and 200 are potentially drawing a “Death-Cross” formation, which for the time being suggests exercising precautionary measures. The death-cross pattern is expected to add to the already existing selling pressure, putting the current corrective phase in jeopardy. Furthermore, aggressive risk management is advised for the upcoming sessions, as volatility is predicted to rise due to the prevailing conditions.
On the Upside the quicker trailing EMAs kept yesterday’s session under pressure from the 1735 resistance levels. Furthermore, the EMA-50 is moving to cross below the EMA-200, signaling a bearish addition. Although prices have seen many fake outs in recent sessions, so a comparable possibility cannot be ruled out here just yet. However, bulls would need to make significant efforts to negate the forming bearish formations and reverse the trend, even if only temporarily. Ethereum is currently heavily crowded between 1735 and 1780 levels.
On the Downside the support level of 1710 could not be maintained and the price fell lower. After breaking below the 1710 level, Ethereum has moved into the next supporting zone of 1700 to 1680, where it is now holding price. However, the reaction for the time being remains average, and if buyers do not step up soon, the momentum may derail further. Slower momentum remains unsuitable for the bulls, who are looking for at least one more wave of corrective upside.
