1-Day Analysis:
Big Picture: The weekly EMA level has been in action for a few weeks now, preventing price from entering additional rounds of selling. Despite weekly protections, Ethereum is still not out of the woods and structurally still remains weak. The bulls have been showing up at the supports, however they have not yet enforced any follow-ons, suggesting that aggressive buyers are still on the sidelines.
On the Upside Ethereum faces a number of intraday challenges. However, the first barrier of 1660 remains in place. Unless and until the price rises above this level, the upside is unlikely to be considerable. Bulls must create sustained momentum in order to make a solid corrective run higher. Furthermore, all of the key EMAs are sliding towards the downside on a daily time-frame, adding to the existing pressure. Ethereum’s reversal above the EMA-200 level would tip the scales back in favor of the bulls. However, above 1660 level, the next set of resistances are present at 1680 to 1700 levels, followed by 1720 to 1730.
On the Downside the support levels of 1630 and 1620 remain solid, preventing the price from falling any further. For the previous three weeks, the bulls have been able to maintain the EMA-200 weekly support level. This demonstrates that the weekly support is significant, and bulls aim to hold this level for as long as possible. Furthermore, the channeling supports continue to ascend higher session after session. This range is critical for Ethereum to maintain in order to avoid reverting to bearish domination. The next supports below the weekly EMA are at 1600 and 1555.
