4-Hour Analysis:
Big Picture: ETH is continuing trading inside the confines of a falling wedge formation. As long as the price is contained within the channel, the downside is the most likely outcome. However, once an upside breakthrough is evident, this pattern is usually positive. Furthermore, ETH is currently showing bullish divergence over the 4-hour time frame. For the rest of the day, expect a volatile session.
On the Upside a major resistance level is anticipated to be found between 2975 and 3000. This level is expected to cap the upside initially and to provide a strong rejection. However, if it is breached, the pattern will likely break, with the next upside expected at 3100, followed by 3150-3180 supply levels. Sustaining above this level is required to hit the pattern’s eventual aim of 3330.
On the Downside 2890 level provided initial assistance for the day. The trendline support has stopped the fall at this level, and as long as this level holds, the downside is protected; however, if this level is breached, the price is expected to fall to 2820-2790.
