Ethereum ETH / USD is trading below the 21 SMA located at $ 2,540 and below the 4/8 murray. Having broken the uptrend channel, it is now consolidating below the key level of $ 2,500.
ETH / USD is consolidating below the $ 2,500 psychological level, suggesting that short-term traders decided to take profits after the price failed to close above $ 2,565, the 5/8 murray zone.
The 200 EMA, located at $ 2,150, could give Ethereum a new opportunity for the bulls. If ETH makes a technical bounce at this level, you will buy with targets at $2,500.
ETH is overbought showing signs of exhaustion and there is likely to be a downward correction towards the support 2/8 murray and EMA 200 around $ 2,187.
Investors are cautious due to the recent decline in ETH / USD below $2,500. Some believe it is a correction of the main downtrend, for a continuation of the decline towards levels of $1,700 and up to $1,200.
On the contrary, other analysts believe that the update of the Ethereum hard fork - London - could give a strong boost to the price of Ethereum to the level of $3,000.00. Later on, it could rise to $ 4000.00.
The key for Ethereum is that the crypto has come under bearish pressure, so we are able to sell while it remains below $ 2,540. We believe that Ethereum could consolidate between a range of 2,600 and 2,000 in the short term. The eagle indicator is showing a bearish signal.
Support and Resistance Levels for August 04 - 05, 2021
Resistance (3) 2,790
Resistance (2) 2,710
Resistance (1) 2,595
Support (1) 2,400
Support (2) 2,300
Support (3) 2,205The material has been provided by InstaForex Company - www.instaforex.com