8-Hour Analysis:
Big Picture: As the bearish flag target completes, aggressive short-coverings are being noticed. The price of Ethereum has entered a strong support zone. In order to absorb the remaining sellers and establish new longs, a consolidation period needs to be observed here. To initiate a reversal, bulls must defend present support levels; losing this support region will put ETH into another phase of selling.
The Upside for the most part, nothing has changed. 3030 is the first point of resistance for the day, followed by 3080. The next resistance zone will be seen between 3165 and 3200. ETH must reclaim this level to put a stop to the strong selling. Maintaining above this level, on the other hand, would be a positive sign, with ETH potentially returning to the 3300-3320 range.
On Downside ETH has tapped into the demand zone at 2950-2880. This level has plenty of support yet to offer. This is a significant level for bulls, and they don’t want it to be breached. If this support is not broken, more downside is improbable, but price could test intra-day support level 2820 to take advantage of the remaining liquidity.
