Welcome to this analysis about Ethereum and the 4-hour timeframe perspectives. As mentioned in previous analysis Ethereum formed this main head-and-shoulder-formation which now finally completed bearishly to the downside and Ethereum moved on with increased pressure even more than it was the case with Bitcoin or also other altcoins in the market. With these dynamics Ethereum testing crucial supports in the structure and as I discovered now there are several considerations that need to be done here which will determine the upcoming price-actions of either or development, therefore I detected all the important levels, structural formations, and upcoming determinations we need to consider.
When looking at my chart now we can watch there how Ethereum formed this main ascending-trend-line marked in black, this is the trend-line which held the bullishness previously to the upside and now Ethereum massively dumped into this trendline testing it as initial support and firstly bouncing. This trendline is also matching now with the point-of-control marked in red of the volume-profile as support, this is why the initial bounce showed up now and what we should consider in the next times is Ethereum continuing to bounce from this region to the upside, this will lead to the testing of the upper zones in which Ethereum has major resistances determined by the descending-resistance-line, the 23.6% Fibonacci-retracement and the 50-MA.
All these together building a resistance-cluster which is marked in red in my chart and when Ethereum approaches it there is a high likelihood given that Ethereum shows up with a pullback off this area. What will be crucial after this is how Ethereum continues with the pullback, when the pullback stops again within the ascending-trend-line and finds support in this level this can lead to a stabilization above this trendline from where Ethereum can build up and move into the bullish-stabilization-and-continuation-zone marked in green in my chart from where higher levels can be reached, otherwise when this does not happen and Ethereum increases heavily bearishly this will lead to the wave-C-extension when Ethereum moves below the supports.
In this manner, thank you for watching the analysis, it will be great when you support it with a like, follow and comment for more upcoming market analysis, all the best!
Information provided is only educational and should not be used to take action in the markets.
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