1-Hour Analysis:
Big Picture: On lower timeframes, Ethereum formed a reverse head and shoulder pattern, which shifted short-term momentum in favor of bulls. This resulted in a similar short-coverage event. Going forward, however, the price is once again in a choppy trading zone. To accelerate another short-term move, it must break either side of this range between 1340 and 1225. Strength above 1340 allows for an additional 5% move to the upside, while falling below the demand zone exposes Ethereum to lower supports.
On the Upside Ethereum is currently encountering significant resistance near the 1280 level. Above this, the next level of resistance is at 1315, followed by the supply zone at 1335-1350. This supply zone capped yesterday’s gains and is likely to do so again unless buyers convert this resistance to support. If this is accomplished, the price will rise next towards 1425 and 1445.
On the Downside price is currently seeking support from the lower supports located at 1225-1215. These levels are shaping up to be good supports. However, given the current selling pressure, buyers will need to be even more determined to do so. Furthermore, if these supports fail, Ethereum is likely to fall towards 1170, then 1135, with further downside possible.
