ETH-“Consolidation Phase”

4-Hour Analysis:

Big Picture: Ethereum’s supply is once again limiting the upside. Furthermore, price movement has stayed between supply at 1280-1250 and psychological support around 1000-1118 for the previous 28 days. Both of these ranges have been quite effective, indicating that Ethereum is now in a period of consolidation. It remains to be seen, however, whether this consolidation is accumulative or re-distributive in nature. However, any additional sell-off, may be the last before a significant corrective phase.

On the Upside the initial intra-day resistance is currently around 1175. Breaking this leads to the congestion zone around 1250-1280, followed by the 4-hourly EMA-200. This zone maintains a significant price barrier; nevertheless, these levels are also a good region for stop-hunting, since several sellers have stops above these levels. As a result, price manipulation along these levels is very likely. However, if a valid breakout occurs, the price is expected to rise between 1350 and 1420 in the sessions to come.

On the Downside initial support levels are observed between 1110 and 1105. Following that, the price has an important support level around 1075. If Ethereum fails to hold these supports, it will be exposed once again to the important supports at 1118 and 1000. Bulls are safe as long as price remains above the psychological support level of 1000; however, failure to do so increases the risk of a run down to the recent lows.