The cryptocurrency market is under downward pressure as a result of the Federal Reserve announcement the last week. In the Asian session, Ether reached a low of 2,195.
Bitcoin fell to the psychological level of 30,000. The Ether that is correlated to it has fallen to the low of January 24. A key level coincides with the support of -2/8 Murray which means an extremely oversold market.
On May 9, Ether reached the extremely oversold level of around 5 points. It is likely that in the next few hours there will be a recovery from 2,187 to 2,341.
On the other hand, we can see that Ether is falling and is trading inside a downtrend channel formed on May 4 on the 1-hour chart.
A sharp break of this downtrend channel and a close above the 21 SMA located at 2,341 will be a clear signal for a recovery of Ether in the coming days towards the 200 EMA located at 2,642.
On the contrary, in case there is a technical bounce around 2,187, it will be an opportunity to buy ETH with targets at 2,341, 2,500, and even 2,642.
Our trading plan for the next few hours is to buy ETH/USD if it breaks 2,341 or in case of a bounce around 2,187 it will be an opportunity to buy with targets at 2,500 and 2,642.
