8-Hour Analysis:
Big Picture: Once again, the week began with a deceptive price action, and Mondays are notorious for such price movements. ETH has now established a divergence below the level of 2880. It was stated that if ETH regains this level, aggressive short-coverings may occur. ETH is now attacking the main resistance region once more in order to retake control of the trend. The continuation of ETH over 3200 will be confirmation of the possible divergence.
On Upside the initial resistance is observed at 3035 in the shape of EMA-50. Reclaiming this level will provide a significant lift to price, perhaps extending the rally and allowing it to reach higher levels. Following that, the next intraday resistance level will be noticed around 3070, with a breach of which leading ETH to the big supply region of 3130-3170.
On Downside At 3000-2970, new supports are developed once more. If these are lost, the re-test levels will be lowered to 2950-2920. Price should ideally be constrained by these supports. However, if price breaks below these levels once again and neatly smashes 2880, a severe drop around 2760-2740 would be witnessed.
