4-Hour Analysis:
Big Picture: Ethereum’s initial breakout effort was aggressively fought by sellers, but bulls did not give up and are in the process of another breakout. Ethereum is now holding the channel as support, although the reaction remains moderate. Price must maintain this level or else the breakout will be a fakeout and price will re-enter the previous channel. The day’s session is expected to be volatile.
On the Upside price is seriously struggling to get a hold above 1610. This is an important level to attain and maintain. A clean break above this level takes Ethereum to 1640, and then to 1680. Continuation of momentum beyond 1680 is expected to pave the way for 1730, 1780, and 1800.
On the Downside 1560 is once again serving as the day’s initial support. Loss of this support yesterday nearly resulted in a re-test of the 50% Fibonacci level, but the re-test fell short by a few points. Both of these levels will continue to serve as supports. If they are lost, Ethereum will be exposed towards 1425, followed by 1340.
