8-Hour Analysis:
Big Picture: Ethereum had a massive sell-off after breaching the breakout-based support. Lower support levels, on the other hand, have seen a similarly powerful reaction, nearly reverting the day’s losses and printing a hammer candlestick. This demonstrates that there is sufficient demand at the lower levels and that buyers are ready to absorb the dips. However, a consolidative environment for the session could be noticed.
On the Upside Ethereum saw intraday profit-taking at the EMA-50 level. This level capped yesterday’s advances and remains a necessary barrier to overcome. The EMA is now trading at a price of 1326.30. Ethereum would need to rise over this level to prompt additional aggressive short-coverings, which would push the price higher towards 1350, followed by the 1370-1380 range level.
On the Downside the 1280-1255 level supports are still valid, since sellers have yet to entirely breach the level. Below this level, the next level of support is at 1220, followed by 1190. Ethereum should ideally not break 1220 level, as breaking this would once again add pressure for the extended downside.
