4-Hour Analysis:
Big Picture: The supply zone above remained too strong for bulls to break, resulting in a slight pause. This breather is now expected to retest lower support levels. Holding onto lower support levels will re-strengthen the bulls, who may then try to break through the resistance level. Furthermore, the continuation of the breakout and the display of strength by the EMA-50 have been bullish price developments in recent days. Overall, for a macro-bottom formation, this must occur frequently.
The Upside the initial resistance level is now spotted at 1150-1170. The major resistance, however, remains in the supply zone of 1250-1280. Furthermore, the EMA-100 is having an impact on this threshold. Because both the supply level and the EMA-100 played a role in the initial rejection, Ethereum requires acceptance above it to proceed towards higher objectives around 1350, followed by 1425.
On the Downside Ethereum is currently testing the prior breakout trendline for support. This support is now holding firm, but losing it opens the door to the lower support level at 1075. This support has remained a key support since mid-June, having only been violated once since then. Loss of this level will be a blow for aggressive bulls, perhaps potentially exposing price to the 1018-1000 level once more.
