4-Hour Analysis:
Big Picture: Another tense session concludes with no major breakthrough. Ethereum is now forming notable Lower Highs and Lower Lows. Such price movement indicates a declining trend. This is not a good sign for the bulls, who are currently defending the breakout-based support and the 61.8% Fibonacci level. Buyers are presently out of time and must move swiftly to avoid any signs of weakening.
On the Upside Ethereum is encountering resistance from the falling channel resistance. The channel resistance is now at 1355. The next level of resistance is at 1380. Furthermore, the congestion zone at 1425-1525 is still prominent and would be exploited as a selling opportunity if there were any symptoms of weakening. Hence profit-taking is advised if these ranges are tested.
On the Downside 1320 reappears as a support level. These supports are holding onto intraday trade, but they are breached anytime there is a strong impulsive move. As a result, traders should preferably position themselves on major supports while using intra-day support as trailing levels. The 1280-1255 zone has stronger support for the sessions. This support zone must stay strong in order to avoid a further pullback into 1190, followed by 1120.
