4-Hour Analysis:
Big Picture: Ethereum’s failure to maintain momentum indicates that it remains firmly in bearish territory. Ethereum was once again met with opposition off the prior range support, which is now serving as a big obstacle. Furthermore, Eth is once again closing in on the range lows, which remain a key support level for Eth. A quick deviation below range lows would be deemed a liquidity seeking event, but if the breakdown continues, it is likely to drive Eth to much lower support levels. To negate the pressure, Eth must maintain a foothold above the 2000 mark.
On the Upside the 1800 level is considered as initial resistance, followed by 1840. Following that, we have resistance at 1915, which remains as a critical level for Eth to regain. This is where we observe significant horizontal resistance, followed by the 4-hour EMA-100. This EMA has not been regained since early May, making it an important level for bulls to watch. Following that, the next important resistance is shown in the form of declining channel resistance at 1970. A foothold above this level is required for a breakout and any further upward movement. Breaking 1980 and reclaiming the psychological level of 2000 would be a significant lift for bulls.
On the Downside Eth is once again clinging to the low support range of 1720-1700. This support level has maintained price several times, but in the previous few days we have witnessed numerous tests in a very short period of time. Because this process has weakened the support, a robust reaction is necessary to keep this support level in place. Furthermore, there is a considerable risk of a fast drop below this support level, putting late sellers on the wrong side. However, the collapse must not last for a three-day closure, else Eth would likely fall sharply towards 1530, then 1415, and finally 1290.
