The cryptocurrency with the second highest volume of transactions is trading around the psychological level of 3,000. In the Asian session, it fell to the low at 2,812. From this level, it is now rebounding and is likely to continue rising until it finds resistance at the line of 6/8 murray around 3,125.
Ethereum has serious problems to recover because it is now below the SAM of 21. It entered trading below this moving average since September 7 when the cryptocurrency market had a sharp fall.
Since that date, Ethereum has been moving within a price range between 3,480 and 3,125. This led to the formation of an inverted pennant pattern, which targets the EMA of 200 located at 2,534.
Therefore, while ETH is below the technical pattern and below 6/8 of a murray, the downward pressure will increase and could trigger a fall to the level of 4/8 of a murray located at 2,500 and the EMA of 200.
The medium-term outlook still remains bullish for Ethereum as the 200 EMA is acting as a support. If it makes a technical bounce in the moving average, there will be a good opportunity to buy with a target at 2,812, 3,125 and up to 3,488 level of SMA 21.
The scenario could turn bearish if ETH consolidates below the key level of 2,500 and below the 200 EMA. Then, it could drop to the next support of 2,187 (3/8) and up to 1,875, the level of July 21.
Our outlook in the short term will be bullish as long as it remains above 2,500. Therefore, in case of a rebound at these levels we can buy. If ETH approaches the SMA of 21 and fails to break it, it will be a good opportunity to sell with targets at 4/8 of murray.
Support and Resistance Levels for September 21 - 22, 2021
Resistance (3) 3,278
Resistance (2) 3,125
Resistance (1) 3,081
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Support (1) 2,812
Support (2) 2,640
Support (3) 2,515
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