2-Hour Analysis:
Big Picture: Ethereum held its footing over the weekend, but momentum has slowed on lower time frames, allowing the indicator to cool off. This, however, has almost little influence on daily RSI readings because the daily RSI parameters are at one of the highest multi-year levels, indicating no slowdown as of yet. Although Ethereum’s approach to the above resistances demands careful risk management, considering the extremely overbought conditions, any short-term exhaustion cannot be ruled out.
On the Upside Ethereum has a prevailing 3-Day Supply Zone between the levels of 4030 to 4100. This will be an extremely crucial and important zone for the pair. Acceptance above this range opens an extensive upside for Ethereum allowing the price to target 4200 level followed by 4465 and the all-time high mark of 4870 level.
On the Downside the psychological level of 4000 could establish itself as the primary support level. Meanwhile, another nearby support appears around this level at 3990. These supports can resist short-term profit-taking. Below these levels, the next rounds of support are around 3945, followed by the 2-hourly demand zone at 3850 and 3865. This level contains the 2-hourly EMA-50, which has been assisting Ethereum in its prevailing trend.
