1-Day Analysis:
Big Picture: For the previous two weeks, Ethereum has been lingering on the weekly EMA-200 level. The initial sell-off was similarly stopped at the EMA support level, and the price also held level in prior week. Except for a single fakeout, this EMA has not been broken since January 2023. This is a pivotal threshold for Ethereum’s next trending moves. Price sustaining this EMA may trigger wide rounds of short-coverings on the daily time frame; but, if sellers are able to break through this support level, another major sell-off may occur in the coming days.
On the Upside Ethereum is struggling to break over the 1640 resistance level. Since mid-July, Ethereum has failed to move inside the oversold conditions of the relative strength index (RSI), implying that Ethereum has been lacking of any form of aggressiveness for several weeks. Similarly, bulls have not been aggressively challenging resistance levels for a while. The initial resistances for the session stays at 1640, followed by 1660 and 1680 to 1700 levels.
On the Downside Despite the current more dire circumstances, the 1630 level of March’s support has been maintaining price. However, if bulls fail to show up, this support is unlikely to last for very long. Loosing this support exposes Ethereum back to the 1620 support level, where the EMA-200 is visible. The EMA has also been responsible for the price remaining above the March support level. Any pressure accumulation below the EMA level might be devastating for the bulls, exposing considerable downside.
