4-Hour Analysis:
Big Picture: For the last six trading sessions, Ethereum has been in a gradual corrective cycle. The correction did not result in any significant declines, but rather in a lower band indicator-based adjustment. This pullback has created enough space in the oscillating indications for Ethereum to pull another move. It must overcome the declining channel resistance and gain a foothold above 1700 to transition into second phase of recovery. Failure to do so may result in a loss of momentum, exposing it towards the downside.
On the Upside 1660-1680 continues to serve as immediate resistance. Several testing since yesterday have failed to provide any success above this zone. Following that, the next significant resistance level is at 1700. Because of its historical significance, this is a significant price level. Bulls will require a stronghold above this level to regain dominance over sellers, and successful acceptance above this level opens the door to more gains, initially towards 1750-1770, with additional possible upside on cards.
On the Downside 1620 has been providing adequate assistance for the day. As long as bulls can hold this off, higher levels remain quite likely; but, shattering this support will open the door to further fall towards 1560, followed by the EMA-200. Expect short-coverings if the EMA-200 is tested; however, if the bulls fail to maintain this level, additional decline is likely towards 1400-1365 and possibly towards 1250.
