4-Hour Analysis:
Big Picture: Ethereum remained steadily sideways throughout the weekend. Buyers have stepped back-in since initially losing the key support level. It is currently challenging the falling channel resistance. A breakthrough above this will call upon a decent round of short-coverings. This channel has been holding back price from gaining any momentum. As long as the breakout base support holds, expect some relief from selling pressure.
On the Upside the falling channel resistance at 1325 provides immediate resistance to Ethereum. This trendline must be broken in order to relieve the intense selling pressure. Furthermore, a break above this will initially lead to 1345, followed by 1353, where the EMA-50 is noted. The second wave of resistance is found between 1370 and 1380. This region has been limiting the upside potential to higher levels. If Ethereum breaks through this zone, it will then move towards the 1425-1525 area.
On the Downside the 1280-1255 support levels held steady over the weekend and are still operational. This level has been absorbing all of the selling pressure. Holding this level for a bit longer can exhaust the sellers, forcing them to cover their shorts. Failure to retain these supports, on the other hand, exposes Ethereum to additional lower levels, first at 1190 and then potentially towards 1120.
