Ethereum is currently trading below the 200 EMA located at 2,742. Since March 5, ETH has been forming a triangle pattern that has already been broken. The crypto is likely to continue its rise until it reaches the top of the downtrend channel around 2,860.
Since the beginning of February, ETH has been consolidating above the psychological level of 2,500 and below a downtrend channel on the 4-hour chart.
ETH price needs to recover above the levels of 2,740 (200 EMA) and 2,870 (downtrend) to have at least hope of a rally in short-term to reach 3/8 Murray at 3,437.
In the event of a sharp drop, it is expected to consolidate below 2,500 and above 2,187. The drop in Ether could be caused by panic among investors due to risk aversion and they could liquidate their holdings adding more pressure to the price.
Although the movements and consolidations are not clear for the Ethereum price, there is still hope for a recovery as long as it remains trading above the 21 SMA located at 2,582.
Ether has a cautious move. If it fails to consolidate above the 200 EMA or the downtrend channel, it will signal a resumption of its downtrend and it could fall back towards 2,500. If bearish pressure prevails, the price could even reach 2,187 (-1/8Murray).
Our trading plan for the next few hours is to buy ETH/USD while it remains above 2,582 with targets at 2,742 and 2,820. The eagle indicator is giving a positive signal.
