On a 4-hout chart, Ethereum ETH / USD is trading below the 21 SMA and below the 6/8 Murray line with a bearish bias after am attempt to break the $ 3,400 level.
If BTC continues to lower, ETH which is correlated is likely to fall to the support of $ 2,812. This is a range level and there could be a technical bounce. If the 5/8 Murray is broken, ETH could continue its fall towards the lower support of $ 2,500 (4/8).
Ethereum could be at risk of a further downtrend and it could get complicated if the Ethereum price fails to defend the psychological level of $ 3,000. A break of this level will fuel doubts and fears among investors and could trigger a sell-off down to the key $2,500 level.
In the chart, we can also see the formation of a fractal that began on August 3 and has been consolidating until today. This technical pattern has strong relevance because it shows us that the market could be accumulating more sellers, and that the buying pressure would be decreasing.
Therefore, our outlook for now is bearish. The key point is to sell below the SMA of 21 (3.125) with a target at 2,812. If the bearish force accelerates, we could continue selling until the EMA of 200 located at 2,346.
The technical reading of the eagle indicator that measures the strength and volume of the market is showing a bearish signal on 4-hour charts. Therefore, we can continue selling ETH in the short term.
Support and Resistance Levels for August 26 - 27, 2021
Resistance (3) 3,445
Resistance (2) 3,338
Resistance (1) 3,273
----------------------------
Support (1) 3,004
Support (2) 2,925
Support (3) 2,743
