8-Hour Analysis:
Big Picture: Ethereum has been struggling significantly below the broken trendline. Multiple intra-day attempts to recover this level were unsuccessful. It has now started a strong sell-off that is currently stalling near the possible double bottom level of 1220. If Ethereum breaches this, lower supports will be tested. However, the inflation report may encourage aggressive short-coverings, thus aggressive profit-taking and risk management is advised.
On the Upside 1255 and 1280 will act as low time-frame resistances. These resistances, which were recently important support levels for Ethereum, will now function as resistances if price does not retake them in the next several hours. The next level of resistance will be observed above them at 1315, followed by the EMA-50 level at 1328. Ethereum would require strength above this level to provoke aggressive short-coverings, which would then squeeze the price further to the upside.
On the Downside the key support levels of 1280-1255 are currently being breached. The immediate support level is currently at 1220. This has been the wicks low in this sideways channel. If price can maintain this level for an extended period of time, it will be confirmed as an initial support level. However, breaching this would expose Ethereum to 1190, then 1130-1070 range levels.
