4-Hour Analysis:
Big Picture: As previously said, Ethereum’s momentum may decelerate as it looks to re-test recently built support levels before continuing to increase. Ethereum is currently attempting to re-test the lower supports. To continue on its path of recovery, it must maintain these supports between 1075 and 1000. A successful re-test of the supports, followed by a stronghold above 1135, would trigger the second stage of corrective reversal.
On the Upside initial resistance is seen at 1135 once more, followed by the EMA-50 at 1176. This EMA holds key importance for price recovery. Since early April, it has not been recovered for more than a few days. As a result, in order to counteract the massive selling pressure, Eth must reclaim and strengthen above this critical level. Following that, the supply zone around 1270-1280 serves as the next point of resistance. Ethereum would need to maintain a grip above this supply level in order to approach the upper resistance zone. There is a second wave of resistance in both 1332 and 1423. These impending challenges must be addressed before Eth may see any additional upside.
On the Downside initial support is once more seen at 1075 level. If this level is breached, Eth is expected to be exposed again towards the 1015-1000 levels. Holding these supports is key for further price recovery as losing them could expose Eth back towards recent lows.
