1-Hour Analysis:
Big Picture: Ethereum forms a short converging triangle pattern. In yesterday’s session, Ethereum hit another 52-week high after touching its highest candle since December 2021. Going forward, the next short-term move will most likely be from the breakout of the triangular formation. A bullish breakout leads towards 3950 to 4000 levels, while a bearish breakdown slides the downside into lower supports near 3580.
On the Upside Ethereum is facing an intra-day challenge at 3810 level. Above this level, the upside extends back towards 3840, which represents the trendline channel resistance. A break above this level is required to drive Ethereum back into the 3905 level initially, followed by 3950 and eventually towards the psychological milestone of 4000. Some additional partial profit-taking around the $4k level remains likely.
On the Downside Ethereum’s lower time frame support ranges from 3740 to 3725 levels. This region contains several horizontal as well as 1-hourly EMA-50 supporting levels. Bulls must hold this region strongly if they are to continue pushing higher, as any closings below this level might result in a re-test of the lower range of 3600 to 3580 levels.
