Big Picture: For the past few months, Ethereum has been a front-runner. It has broken out of the lower-time frame congestion zone and is currently pushing for the daily EMA-50 level. Buyers are looking for higher levels and will require price acceptance above the EMA-50 to do so. Failure to exceed this can lead to intra-day profit-taking or hold prices in a consolidative environment.
On the Upside Ethereum is now challenging the dynamic resistance level of 1246 in the form of the EMA-50 level. This is a critical level of resistance for Ethereum and must be converted back into support for price to push for another upward surge. Surpassing the EMA-50 level will most likely lead Ethereum towards the 1280 to 1300 range levels. At these levels, aggressive profit-taking remains likely.
On the Downside the lower-time frame congestion zone between 1220 and 1230 is now intended to serve as Ethereum’s support region. Maintaining this zone will keep the short-term trend bias towards the upside. However, if price goes back below this zone, it is expected to continue sliding and remain choppy to volatile. Below 1220, the next supports are in the 1210 to 1205 range, with 1202 acting as a trendline support.