4-Hour Analysis:
Big Picture: The bulls failed to convert this short-covering event into a momentum-based rise, which resulted in strong profit-taking. The last several trading sessions for Ethereum have been very unstable, with both buyers and sellers unable to establish a grip over the chart. As long as these condition exists, volatility is likely to continue. To reignite interest, Ethereum must break and sustain above 1425.
On the Upside 1320 and 1340 reappear as the day’s initial resistance. The next resistance zone is observed between 1370 and 1380. These resistances denied the upswing and triggered aggressive profit-taking. These levels will continue to be significant resistances for Ethereum. If these are breached, Ethereum is expected to go to the next range, which spans 1425-1525.
On the Downside Ethereum has returned to breakout-based support at 1280-1255. For a while, these supports have been keeping back aggressive sellers. As a result, maintaining these supports is critical. The breakdown of these supports increases the danger of a greater drop. Moreover, losing this range will expose Ethereum to 1190, followed by 1120. However, it also opens the range between 1280 and 1000.
