4-Hour Analysis:
Big Picture: Ethereum has maintained the support levels quite well and is now attempting a breakout once more. For the first time since early June, it has recaptured the 4-H-based EMA-50. This level has been reclaimed a few times in the last several months, but bulls have never been able to maintain a stronghold above this EMA for more than a few days, so to claim a genuine reclaim price must hold this EMA for a few days now, ideally for a week. Furthermore, failure to break out may result in profit-taking or a re-test of lower supports. A significant breakout, on the other hand, will maintain the high momentum.
On the Upside price faces initial hurdle at falling channel resistance at 1165 level. Following that, we have the supply zone around 1270-1280 level that serves as the next point of resistance. Ethereum would need to maintain a grip above this supply level in order to approach the upper resistance zone. The second wave of resistance is seen at 1332 and 1423. These impending challenges must be addressed before Eth may see any additional upside.
On the Downside the EMA-50 holding further could emerge into a support, although the original support has now climbed to 1135. Following that, 1075 is the next major support level. If this threshold is violated, Eth will be exposed to levels ranging from 1015 to 1000. Maintaining these supports is critical to continuing this recovery, since losing them will expose Eth to recent lows once more.
