Ethereum (ETH) in the American session is trading at 1,915 above the support 3/8 Murray located at 1,875. Ether has been falling for eight consecutive weeks and it is likely that a technical rebound could occur in the coming days. The price could reach the psychological level of 2,000 and even the zone 4/8 Murray at 2,500 and the 21 SMA at 2,763.
In case the downward pressure intensifies, Ether has the previous support at the 200 EMA located at 1,628. A strong technical bounce could occur around this area. It is likely to give an opportunity to buy and the price could reach the area of 21 SMA at 2,763 in the coming weeks.
On the contrary, a weekly close below 1,630 could mean an acceleration to the downside and ETH could reach the zone of 756 which coincides with the bottom of the downtrend channel.
Factors such as global inflation, persistent supply snags, monetary tightening, and geopolitical tensions put the strength of ETH/USD at risk, and any recovery will only be a selling opportunity.
The Eagle indicator is moving around the extremely oversold zone on the weekly chart. A recovery in Ether could occur in the coming days, thus suggesting an opportunity for the bulls.
In the medium term, the outlook for Ether remains negative. So, any technical bounce towards the zone of 2,500 (4/8 Murray) or 2,763 (21 SMA) will be seen as an opportunity to continue selling, targeting the psychological level 2,000 or the 200 EMA at 1,628.
Our trading plan for the next few days is to buy above 3/8 Murray at 1,875, with targets at 2,000, 2,293 and 2,500. The Eagle indicator is in an oversold zone which could support our bullish strategy.
