The daily chart of Ethereum (ETH/USD) is showing strong bullish signal. After having consolidated around 3,300 since August 6, the price made a bullish breakout above the 61.8% Fibonacci retracement, but it has strong resistance at 7/8 of murray around 3,437.
The key level of 7/8 murray is a strong resistance level that also represents a reversal. So, if Ethereum fails to stay above this level, there could be a drop to the 6/8 murray support at 3,125.
This critical 7/8 murray level could be a sign of the last effort of the market to rise above the 61.8% Fibonacci level. If it fails to consolidate above the psychological level of 3,500, there could be a correction to the level of 3,000.
If Ethereum breaks out of the 3,000-3,351 range, there would be a scenario in which sellers push buyers out of their bullish positions. In this case, the fall of Ethereum could increase and reach the level of the 200 EMA located at 2,300 and the level of 23.6% Fibonacci.
On the other hand, above the range of between 3,000 and 3,3351, the opportunity could be developing in favor of the buyers. For this, there should be a consolidation above 3,400. Only then could Ethereum rise and reach the level of 8/8 of Murray located at 3,750.
Market sentiment for Ethereum is developing in favor of buyers, but some negative news or rumors can quickly drive it down to the critical level of 2,500.
Therefore, according to technical analysis, as long as Ethereum remains below the 7/8 murray line, it will be a good opportunity to sell with the targets at the 3,125 and 2,750 levels of the 38.2% Fibonacci.
Support and Resistance Levels for August 31, 2021
Resistance (3) 4,062
Resistance (2) 3,750
Resistance (1) 3,437
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Support (1) 3,125
Support (2) 3,012
Support (3) 2,812
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Trading tip for EThereum for August 31, 2021
Sell below 3,437 (7/8), with take profit at 3,125 and 3,012 (50%), stop loss above 3,550.
