Ethereum (ETH/USD) price is trading around the psychological level of 3,000, above the 21 SMA, and 200 EMA on the 4-hour chart. Since March 15, it started a bullish bias above the key level of 2,500 (4/8 Murray) and reached the level of 3,050 (7/8 Murray) that represents a recovery of more than 20%.
We can see the formation of a rising wedge pattern is not confirmed yet but a sharp break and trade below the 21 SMA around 2,926 could confirm the bearish move towards the 200 EMA at 2,779. So, the price could return down to support at 2,500.
Above 3,000, Ethereum struggles to continue its advance and to hit 8/8 Murray at 3,125. This lack of bullish strength combined with the sell signal from the eagle indicator shows that Ether is unlikely to continue a bullish path and can reach the 3,500 level.
This technical formation of a rising wedge signals a downtrend for ETH. Therefore, investors can expect Ether to trade back below the 200 EMA at 2,779. A daily close below 4/8 Murray at 2,500 will trigger a correction to 2,000 and even to 1,875.
We must remember that Ether as well as Bitcoin are risky assets. Hence, the increase in tensions between Russia and Ukraine could jeopardize the strength of ETH and it could fall again to the support zone of 2,500.
On the other hand, the FED has the desire to continue raising its interest rate in the coming months. This will also affect the strength of the Ether in the medium term and we could expect that by the end of the year, it could be trading around $2,000 or less.
On March 22, the eagle indicator reached the 95-point zone which signals an imminent correction. We must wait for the confirmation of a break below 2,900 in order to sell with targets at 2,779, 2,656, and 2,500.
