Ethereum (ETH/USD) is trading above the uptrend channel, above the 200 EMA and the 21 SMA. Although it maintains bullish strength, it is showing overbought levels and signs of exhaustion.
A technical bounce around the 200 EMA and at the bottom of the uptrend channel will be an opportunity to buy Ether with targets at 3,125 and up to 3/8 of Murray at 3,437.
Conversely, a daily close below 2,950 and a sharp break of the uptrend channel could mean the start of a bearish move and we can expect the price to drop 0/8 Murray around 2,500 in the next few days.
The eagle indicator is trading below a downtrend channel and the strength is likely to run out. We do not rule out a move lower in the coming days towards the 5-point level which is mirrored in the ETH price in the zone of 2,800 to 2,550.
Our trading plan for the next few hours is to wait for a technical bounce at the 200 EMA to buy. Conversely, a close below 2,900 will give us a clear signal to sell. The eagle indicator is generating a negative signal.
