4-Hour Analysis:
Big Picture: ETH has posted an impressive recovery of the range lows in last few sessions. Most of that has been as a result of aggressive short-covering and oversold conditions. However, Ethereum faces a number of significant resistances on the upside, which are likely to limit the gain. Going forward, we are expected to see a favorable trading environment on both sides in the coming sessions. As a result, focus on the levels.
On Upside the day’s first resistance is spotted at 3094 in the shape of EMA-32. The next important resistance is located between 2150 and 2170. This is where strong horizontal resistance, followed by EMA-50, are likely to make things harder for bulls. However, there are further considerable resistances between 2320 and 2390. As a result, ETH bulls will find it tough to break above these levels. If this level is breached, the rally is expected to extend until 2440.
The Downside remains unchanged, with first intraday support seen around the 2000-1990 zone. The next support levels are at 1950, followed by the strongest intra-day supports in the 1925-1900 range. These supports should ideally hold to keep ETH positive on smaller time frames, but if they are breached, range lows are likely to be exposed once more.
