4-Hour Analysis:
Big Picture: Ethereum failed to make a breakthrough and, as a result, lost momentum, resulting in yet another profit-taking event. The range play between 1380 and 1280 is still ongoing, with neither side pulling the strings. Furthermore, a converging triangle is forming within a range-bound situation. Such patterns inside a range-bound environment can be deceptive at times, but if a solid reaction is visible, then powerful impulses can be observed. The week is expected to be volatile.
On the Upside Ethereum has developed strong intraday resistance at 1350 once again. Following this is the next resistive zone between 1370 and 1380. This region has been tested numerous times and has consistently rejected price. Unless and until strength above this zone is established, the upside will be limited.
On the Downside the trendline-based support at 1290 would provide initial support. This trendline also nearly coincides with the breakout-based support, which is situated between 1280 and 1255. Both of these levels are still expected to provide adequate support, but they will be overwhelmed by pressure if the bulls fail to show any conviction. If this support level is breached, Ethereum will be pushed towards 1190, followed by 1130-1070.
