ETH-“Watch-Out for Short-Coverings”

1-Day Analysis:

Big Picture: With a possible bearish closing for its sixth session, Ethereum is presently seeing its longest losing run after several weeks. Bulls entirely lost momentum after reaching the major milestones higher, allowing sellers to take advantage of their corrective downside. But now as the price approaches the lower supports, a base formation is beginning to show, which may trigger some aggressive short-covering cycles. 

On the Upside initially, Ethereum is having trouble between 2230 to 2250 levels. This range has been preventing any potential recovery. In spite of multiple efforts, sellers have managed to keep prices within this range. This zone also serves as the immediate 50% Fibonacci retracement level. If the price breaks over 2050, it can try for the 61.8% Fibonacci retracement level of 2280, which is probably going to be another obstacle. The following resistance levels, however, are 2300 and 2320, above 2280.

On the Downside Ethereum’s initial 2220 and 2210 level of supports are still operational. The relative strength indicator has been failing to cross the 50 level on lower time-frames over the past few hours, indicating that the momentum for the pair is still quite weak. Similarly, Ethereum has lower-time frame trendline support at 2210, which bulls will need to hold if they want to see some further recovery. As losing this support would drag price back into 2180 and potentially 2165.