ETH/USD is trading around 3,576, below the 21 SMA, and below the 4/8 Murray pivot point located at 3,750. Ether is likely to continue to bounce in the coming hours, as over the weekend it reached the low of 3/8 Murray and thus, traders gained an opportunity to resume buying.
ETH had been under strong downward pressure for five consecutive days. We believe that we could see a recovery of this cryptocurrency this week.
On the H4 chart, we can see that Ether has been trading within an uptrend channel since January 31 that was broken, but it could resume its bullish cycle only if in case the price consolidates above 3,690 – 3,750.
This brief pullback that ETH has taken in for about a week after it reached the high of 4,062 allows the bulls to resume buying. We believe that if Ether consolidates above 3,750 in the short term, it could return to the psychological level of $4,000.
On the other hand, in case Ether continues to trade below 3,750, any technical bounce could be seen as an opportunity to sell. We believe that it could reach 2/8 Murray around 3,125 in the short term. Eventually, the crypto could reach the 200 EMA located at 2,472.
As ETH/USD has good support around 3,430, we could look for buying opportunities above this area with targets at 3,680 and 3,750.
