8-Hour Analysis:
Big Picture: Aggressive short-coverings continue to be observed as ETH takes firm support from the demand zone. This level could still penetrate deep into the support, however it needs to hold the 2800 area. Overall, ETH is nearing the end of its correction, and sellers should be cautious at these levels. Because ETH has been outperforming BTC in recent days, it may once again be the catalyst for a surprising turnaround.
The Upside Over the most part, nothing has changed, as the market has been consolidating in a narrow range for the past few days. 3070 is the first point of resistance for the day. Between 3165 and 3200, the next resistance zone will be visible. To put an end to the heavy selling, ETH must retake this level. On smaller time frames, bullish divergence is beginning to appear. To initiate a move towards 3300, ETH must maintain a stronghold above 3200.
On Downside the price is being protected from further declines by a combination of demand zone and MA-200 8-hourly. ETH is anticipated to continue to receive solid support at these levels. However, if ETH breaches these levels then a drop towards 2820-2760 is likely.
