2-Hour Analysis:
Big Picture: Since yesterday’s sell-off, Ethereum has also been trading sideways. It did, however, make a couple intra-day efforts towards the 1240 level but was refused each time. The inability to regain control over 1240 raises concerns. If a reversal is intended, Ethereum should at the very least reclaim the 1240 level. Failure to recover above 1240 may trigger another short-term sell-off targeting the 1180-1165 zone.
On the Upside a major intraday resistance level has been identified at 1235-1240. Attempts to regain this level have been met with significant rejection. Above this, at 1247.50, is the 2-hourly EMA-200. Both of these levels will serve as significant intra-day barriers for the day. A stronghold above them would very probably allow a return to the 1280-1300 area, where another significant congestion zone exists.
On the Downside Ethereum is clinging to the 1220 support level. No candle has been able to close below this level in the last few hours. This demonstrates that there is adequate demand at this levels. However, regaining the EMA-200 level would serve as confirmation of support. Unless and until that happens, this support will be in the spotlight. Furthermore, the following supports below this level are at 1205 and 1170-1165.
