4-Hour Analysis:
Big Picture: ETH bounced strongly of the intra-day support level on back of an evident bullish divergence. Moving forward, ETH is also breaking out of the falling wedge formation, although a stronger confirmation would be highly valued. ETH now has to successfully re-test and bounce off the 3000-2950 levels; doing so would be regarded a successful breakout of the major resistance level, and yesterday’s move would be considered a deviation, with higher prices expected.
On Upside At 3060, there is significant intraday resistance in the shape of the EMA-50. ETH must break through this key resistance in order to move on to higher resistances. The next layer of resistance is seen around 4145 and 4170. This level is likely to act as a major hurdle going forward. Above this level, 3290 is the next level of resistance.
On the Downside initial support level is identified at 3000, followed by 2970. These are solid intra-day support levels that will most likely offer sufficient support. If these supports are violated, then price may fall to 2930-2925 and re-test the trendline, which was the main cause for the pump.
