1-Hour Analysis:
Big Picture: For the past few weeks, Ethereum has been under far greater pressure than Bitcoin. Furthermore, during this selling rampage, Ethereum has lost a few critical levels of historic supports, which is likely to be a significant blow for the bulls, who will now need a bit more time to regain their confidence. The daily Relative Strength Index for Ethereum has plummeted below the Covid collapse, indicating the magnitude of this sell-off.
On the Upside the first resistance level of 1135 remains unchanged. This level now has a strong horizontal level functioning as a powerful resistance, followed by the EMA-50. As a result, recovering this level will be critical for price. The next resistance level is at 1175, followed by the supply zone around 1270-1280. To target the upper resistance region, Ethereum would need to maintain a foothold above this supply level. Between 1332 and 1423, the second wave of resistance is observed. For Eth to achieve any more upside, these upcoming roadblocks must be overcome.
On the Downside the initial support level for Eth is 1075. This support level has been holding for a few days now, and if it can hold a bit longer with strength, it opens up the possibility of an upward push. If this level is violated, Eth is likely to be exposed again around the 1015-1000 mark. This is a strong level of psychological support, but it should not be tested again and again. This might eventually weaken it and expose Eth to the lower supports at 850-790.
