Ethereum (ETH) is currently trading above the 21 SMA and above the 4/8 Murray at $3,798. The rebound from the low of $3,600 has allowed Ether to settle above a key zone that could give it a strong bullish move towards the psychological level of $4,000.
On December 31, Ether fell to the support of $3,600. This level on previous occasions has given it a technical bounce. As long as ETH remains above this key support zone, it is expected to continue in an uptrend towards the resistance zone of $4,062 (5/8). Given that it is now located in this area, the outlook could be bullish and an upward trend would be expected for the next few days.
A recovery of Bitcoin above the psychological level of $50,000 could lead Ether to reach and trade above the psychological level of $4,000. In the next few days, if it manages to overcome the 200 EMA, it could reach the next resistance of $4,375 and up to $4,680.
Conversely, a consolidation below the key support level of $3,600 could accelerate its decline towards the next support of $3,125 (2/8) and towards the psychological level of $3,000.
Since December 23, the eagle indicator has been consolidating within a downside channel and giving a negative signal. However, a break in this channel would mean that market volume is increasing and the bulls would be encouraged to buy ETH.
Support and Resistance Levels for December 31, 2021
Resistance (3) 4,062
Resistance (2) 3,924
Resistance (1) 3,865
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Support (1) 3,654
Support (2) 3,549
Support (3) 3,437
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