Big Picture: The bulls are under pressure after failing a higher-level re-test. The most recent upward spike resulted in a bearish re-test, which has been followed by an instant sell-off. Going ahead, support levels will be under heightened pressure, and if the immediate supports are shattered, Ethereum may plunge towards lower supports. Furthermore, Ethereum’s long-term trendlines are becoming weak. This will be a watershed moment in the move which can turn selling into hyper selling.
On the Upside Ethereum has once again fallen below a few levels that will likely established themselves as resistances. The initial resistance for the session will be at 1660, followed by 1680 to 1700. Any short-term strength over 1700 opens the door to 1720 to 1730 levels, where the dynamic EMAs of 32 and 50 are now present. However, such a move for the session has very little likelihood.
On the Downside after losing the 1680 support, the price swiftly dropped back towards the main support levels. Ethereum is now taking support from the horizontal level of 1630, as well as the weekly EMA-200 level of 1620. This EMA has been the main line of defense for the previous three weeks, and it is now being tested often, which might weaken it. If Ethereum breaches this EMA support, it might be costly for the bulls, who will likely weaken further and see lower levels on Ethereum.