8-Hour Analysis:
Big Picture: Ethereum has regained its pre-merger strength. After a while, it has begun leading the upside. Bullish momentum is still observable, but lower-time frames are beginning to develop bearish divergence, requiring active risk management. This signifies that the strong momentum requires a strong and healthy breather. In the coming hours, Ethereum may continue to rise, but it is advisable to actively book profits on strength.
On the Upside the initial resistance level for Ethereum is 1625. The key resistance for the session, however, is seen at the 1650-1680 level. This resistance area has an abundance of supply, making it difficult for the bulls to maintain their current pace. Furthermore, price may look to hunt down liquidity that is above the 1700 level. This would be a significant price target in the coming sessions. Furthermore, in order to maintain the bullish momentum, Ethereum must establish a stronghold above the 1700 level. This would open the door to the next upsides at 1780, followed by 1820.
On the Downside strong support has been monitored between 1580 and 1570. Holding onto these supports will allow Ethereum to maintain its short-term bullish momentum. However, failure to hold these supports may trigger a large round of profit-taking, exposing Ethereum to 1510 and 1480 levels. If these levels are tested, expect aggressive short covering to be followed by fresh buying.
