ETH-“Converging Triangle”

4-Hour Analysis:

Big Picture: Over the weekend, Ethereum continued to consolidate and formed a converging triangle pattern. It has been quite choppy for the past few days and appears to be preparing to move soon. A move to the higher remains probable as long as it can maintain close to the 1700 level, but failure to pull the trigger on the upside will indeed cause intra-day profit-taking with re-testing some important levels below before any further break-through attempt. Strength over 1770 is essential to maintain the upward trend.

On the Upside Ethereum is struggling to gain full control above the 1700 level. There remains selling pressure that has been causing volatility and choppiness in the price. However further consolidation at this level will absorb any remaining selling pressure and will favor bulls. Successfully regaining control above 1700 would once again pave way towards 1750-1770. Acceptance above 1770 is required to unlock 1840 next followed by 1920 and 2015.

On the Downside price is taking continuous support between 1680 and 1650. This level was once a powerful price barrier, but it is now function as a firm support. The next level of support is at 1620. Price must hold these levels to avoid additional declines, since failure to do so exposes the downside towards 1560, then 1500-1480.