Early in the American session, Ethereum (ETH/USD) is trading around 3,415, bouncing after having reached the bottom of the bullish trend channel forming since July 7.
In case Ether breaks and consolidates above 3,434 (6/8 Murray – 21 SMA), there is a strong possibility for a further rise. So, ETH could reach the strong resistance of 3,513 and even 7/8 Murray at 3,593.
Given that the eagle indicator is showing overbought signals, we believe that ETH/USD could resume its bullish cycle if it consolidates above $3,440 in the coming days. Then, it could reach $3,600 and even the psychological level of $4,000 in the short term.
If Ether falls below the 200 EMA located at 3,317, it could be the beginning of a trend change. Below this area, the price could reach 3,125 and could even return to price levels from early July of around $2,800.
Our trading plan for the next few hours is to buy ETH/USD above 3,437 (6/8 Murray), with targets at 3,513 and, finally, 3,593. In case there is a rejection below 3,437, we could sell with a stop loss above the last bearish candle around 3,470 with the target at 3,317.
