ETH-“Congestion Developing”

4-Hour Analysis:

Big Picture: From the 1660 level, Ethereum’s corrective bounce is encountering major congestion. Ethereum has challenged this resistance zone several times in the previous three weeks, but no significant progress has been made. Notably, not a single 4-hourly candle managed to close above this resistance level. If Ethereum has to prolong its corrective phase any further, it must first overthrow this level, which will likely open the door to the AB=CD pattern.

On the Upside Ethereum has once again failed to break through the EMA-26 and the 1660 resistance level. For the time being, Ethereum’s move forward is being slowed by these recurring rejections. If price is to proceed towards higher levels in the next hours to sessions, a major move over 1660 remains required.

On the Downside after failing to break through the 1660 level, Ethereum is now retesting the 1620 support level. The ongoing reaction indicates that buyers are prepared to step up at this level in order to avoid losing it. However, because Ethereum lacks an extremely  bullish sentiment and due to the strong nature of 1660 resistance, the supports remain fragile and are more likely to fail if bulls fail to step up soon. If Ethereum falls below 1620, it is likely to test its next supports, which are positioned between 1605 to 1595 levels.