Since May 31, the Ether fell rapidly for a while and formed a bearish channel in the course of its decline. Since June 18, we note that ETH/USD has been trading inside an uptrend channel.
According to the daily chart, Ether is above the 21 SMA and within the uptrend channel. It is likely to continue its growth and could reach the top of the channel at around 1,360.
Ether is currently trading at around 1,250, right at the level that matches 4/8 Murray. If ETH/USD manages to consolidate above this level in the next few hours, it could be a positive sign and the crypto is likely to reach 5/8 Murray at around 1,562 in the next few days.
A quick upward acceleration towards the top of the bullish channel resistance at 1,560 could mean a recovery of more than 60% of Ether, which could encourage a new bearish wave, so ETH/USD could fall again and reach the zone of 1,250 or drop lower to the psychological level of 1,000.
On the other hand, the break of the secondary uptrend channel and consolidation below $1,100 could mean a strong bearish acceleration. We could expect a drop towards 2/8 Murray. This level coincides with the bottom of the main downtrend channel at around 625.
Our trading plan for the next few hours is to buy Ether above 1,250 with targets at 1,360 and 1,562. On the other hand, a technical bounce around the 21 SMA at 1,123 will be an opportunity to buy.
The eagle indicator on daily charts shows a clear bullish signal. However, the price could be approaching an extremely overbought zone and a technical correction in Ether is likely in the coming days.
