4-Hour Analysis:
Big Picture: Over the weekend, bullish sentiment in ETH prevailed. Once ETH was able to turn EMA-200 into support, it went on a new uptrend. Going forward, ETH remains incredibly bullish, but indications have entered an extremely overbought zone, which is expected to prompt some strong profit-taking, making it dangerous for new longs. The corrective action will simply be another chance to stock up on ETH. Overall, ETH is currently aiming towards the 3600-3800 range.
On Upside, at 3380-3460, ETH is approaching a heavy supply zone. Since early January 2022, this zone has restrained ETH’s upside potential. This zone is now expected to perform similarly. Partially limiting upside potential and likely to prompt intraday profit-taking. If ETH can establish a foothold above this level, new doors will open towards 3620, then 3780-3830.
On Downside Many various kinds of support are being developed. However, due to a lack of testing, these are still not very reliable. The first intraday support, though, is seen at 3275. If this level is broken, 3180 will be the next intra-day support level. The main support for ETH is still in the 3080-3050 range. This is a breakout-based support region with many confluences that operate as powerful supports and limit the decline. In the event of a longer re-test, ETH can aim for the 2980-2930 region. However these levels be treated as aggressive buying areas.
