4-Hour Analysis:
Big Picture: Ethereum has remained volatile in recent sessions. Furthermore, it has maintained its upward trend, although in a choppy fashion. Ethereum once again swing fails above the recent highs and triggers profit-taking as price failed in sustaining the breakout. After a fairly strong rebound period, the present price action is displaying symptoms of exhaustion. However, this does not indicate the end of the uptrend, but rather raises concerns. With bearish divergence now maturing bulls are starting to lose momentum.
On the Upside the initial resistance level is identified at 1700, followed by 1735. Bulls have struggled to stay above this level for an extended period of time. As a result, Ethereum must break and hold above this level in order to open the door to more gains. Successfully breaching this opens the door to a move towards 1750-1770 as the next resistance level, followed by 1820-1840, and eventually towards 1920.
On the Downside Ethereum has gradually increased its support levels to 1680-1660. These are reasonable support levels that have held quite well. Furthermore, the EMA-100 is rapidly reaching this support level and will strengthen the support. If this level is breached, the downside will be extended towards 1620, followed by 1570, where strong horizontal support is visible in conjunction with the EMA-200. If this level is challenged, expect strong short-coverings.
