ETH – “Consolidation Favorable”

4-Hour Analysis:

Big Picture: Ethereum has provoked another breakout and has so far held it well. The longer price is above the 1680 level, the more likely the trend will continue. Re-tests back into 1680-1650 with a strong rebound, on the other hand, would result in strong confirmations of breakout. Furthermore, a Golden-Cross formation between EMA-200 and EMA 50 is expected in the 4-hour time frame. This will be another good indication for the short-term trend.

On the Upside the initial resistance comes at 1720, followed by 1740. Breaking this would take price towards 1780 and 1820. At these levels, price is expected to encounter significant profit-taking. However, additional momentum over 1820 reopens the 1820-2020 range, with a handful of resistances in between.

On the Downside multiple supports are observed between 1680 and 1650. These levels will be used for re-testing. Ideally, Ethereum should not lose them, or else this momentum could swiftly dissipate. However, below 1650, the next support is indicated around 1620 in the shape of the 4-hourly EMA-200, followed by 1600.