1-Day Analysis:
Big Picture: Ethereum begins the session with immediate selling, prompting prices to fall slightly. Furthermore, Ethereum has been trading in a 3-4% price band that spans from 1700 to 1630 levels since August 18th. As long as prices remain in this range, the upper resistance zone is for selling, while the lower support region is for short-term buying. Although this range will eventually collapse sooner or later, resulting in another trending move, however till then short-term scalps remains the viable option.
On the Upside in yesterday’s sessions, Ethereum broke over the 1640 opening barrier but was again restricted by the presence of the 1660 resistance. This barrier has effectively ceased Ethereum’s surge into the 1680 to 1700 range for the last four trading sessions.
On the Downside each time price gets near to the weekly EMA 200 level of 1622, it quickly recovers. Furthermore, as the price approaches this dynamic support, there is a rapid increase in volume. This indicates that buyers are aggressively protecting this level and are ready to seize any opportunity to buy into it. This will undoubtedly need far more effort from sellers if prices are to sink even lower into the 1565 to 1545 range. However, 1630 remains the primary support level for the session.
