8-Hour Analysis:
Big Picture: Following the merger, Ethereum has been in a relatively corrective period. Furthermore, the corrective phase has now been in a sideways consolidation channel for the past few weeks. Ethereum is still trading in that channel, and recent price activity has gone very dry. Such dry price movements often indicate the end of the consolidation phase or, at the very least, an improvement in price activity. Ethereum might provide strong impulses in the upcoming sessions. However, in order for Ethereum to begin trending, it must first break out of this restricted range.
On the Upside around 1315, the first barrier of the day comes. Following this, the 8-hourly EMA-50 at 1340 is the next significant barrier. In recent months, this EMA has been particularly reactive. The bullish trend will not gain momentum until Ethereum confirms acceptance above this EMA. Ethereum must begin trading above this EMA in order to generate a stronger and more sustainable momentum. Additionally, the next resistance levels above this level are seen at 1350, followed by the 1370-1380 range levels.
On the Downside price honored another day of support off the 1280 range level. This zone between 1280 and 1255 is still strong and willing to offer support when tested. The downside risk will be restricted as long as this support level holds. If sellers manage to breach this level, they will likely go for the 1190 level, and possibly aim towards the 1130-1070 region.
