The daily chart of Ethereum (ETH/USD) shows a strong bullish tone. The accumulation of the last daily candles around $3,200 level is a clear sign of exhaustion of the bullish force with a probability of a prolonged correction in the short term.
The last 7 candles that are accumulating in the area of $3,000 could tell traders that time is ripe to take part of the gains of 81% profitability accumulated in the last three weeks to avoid losing everything.
From its all-time high at $4,364 to its low of July 17 at 1,704, we have added the Fibonacci indicator. The level of 61.8% of Fibonacci results in $3,437 this will be a key point for Ethereum.
We can expect a pullback towards the 61.8% level, after this attempt to break this level. If it fails to consolidate above this zone, it will be a sign that ETH has only made a technical correction and could resume its main downtrend.
The cryptocurrency market remains optimistic, since BTC, the main engine of all other cryptocurrencies, is approaching the target of $50,000. If BTC reaches this level, ETH could follow it due to the positive correlation and reach the level of 3,437 (61.8% Fibonacci).
The technical reading of the Eagle indicator shows that it is approaching an overbought zone. In the short term, there could be a downward correction. Therefore, the key level to sell is below 3,125, where there is the 6/8 Murray support. If a pullback towards 3,437 occurs, it will be an opportunity to sell there. The target for both scenarios is the level of $2,500.
Support and Resistance Levels for August 13 - 16, 2021
Resistance (3) 3,475
Resistance (2) 3,357
Resistance (1) 3,296
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Support (1) 3,090
Support (2) 2,942
Support (3) 2,824
