4-Hour Analysis:
Big Picture: Ethereum is losing steam after a tremendous run to the upside. It is currently vulnerable towards aggressive profit-taking due to the presence of several resistances. Price is currently locked between the crucial resistance of 1915 and the support of EMA-50. Furthermore, it is forming a rising wedge formation, which raises further concerns about the sustainable trend. As long as it holds, the path will be upward; but, a breakdown of this pattern could initiate a corrective phase for Ethereum, with the aim of re-testing lower support levels. To counteract such an action, Ethereum must close above 2165 on a daily base.
On the Upside 1920 continues to serves as the day’s initial resistance. The next point of resistance comes in 2015. As it hits these important levels, Ethereum is beginning to take significant profit-taking. Furthermore, there are multiple intra-day levels between 2015 and 2165 that will pose significant difficulties. Once Ethereum gains acceptability over 2165, it has the potential to rise towards 2300-2400 in the sessions to come.
On the Downside 1880 remains as the first line of support. The EMA-50 is now supporting this level, making it an even stronger support base for the price. Furthermore, a significant trendline is quickly catching up to this level, which remains an even more crucial level. With numerous supports now in place, the level between 1880-1860 is critical, as breaching it would be a bearish indication, exposing Ethereum to 1800-1780. This region is anticipated to serve as the day’s second support region. If this is lost, the decline will likely accelerate and reveal further downside around 1680-1660.
