On the 4-hour chart, Ethereum, ETH/USD, is trading below the SMA 21 located at 3,821. ETH has been consolidating at this level since September 3. After hitting a high of 4,024, it is now retreating. If the price consolidates below 3,750, the downward pressure is likely to increase.
Since Ethereum is overbought, there is likely to be a downward movement below 3,820 with the targets at the 200 EMA located at 3,273. At this level, we expect a technical bounce after which we will be able to buy with the target at 3,750.
The technical reading of the eagle indicator is showing a bearish signal and a decrease in the volume of the market. The levels of 3,270 or the 3,125 support line of 2/8 of murray will be good points to buy from.
Support and Resistance Levels for September 07 - 08, 2021
Resistance (3) 4,110
Resistance (2) 3,996
Resistance (1) 3,882
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Support (1) 3,708
Support (2) 3,392
Support (3) 3,273
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Trading tip for Ethereum for September 07 - 08, 2021
Sell below 3,821 (SMA 21), with take profit at 3,273, stop loss above 3,950.
Buy if there is a rebound at 3,273 (EMA 200), with take profit at 3,750, stop loss below 3,125.
