Ethereum (ETH/USD) is trading around $2,180 within an uptrend channel that has been forming since the beginning of the year and within a secondary uptrend channel that has been in progress since March 27. The outlook could remain positive for ETH in the coming days if it consolidates above the 3/8 Murray line, potentially reaching the upper band of the uptrend channel and even the 4/8 Murray line around $2,500.
ETH staged a strong technical rebound after finding solid support within the uptrend channel, reaching $2,290. However, we are now observing a technical correction, and ETH is likely to consolidate in the coming days above the 200 EMA around $2,109.
If bullish momentum prevails, we could look for buying opportunities above $2,170 with targets at $2,330 near the upper band of the uptrend channel; if the price breaks above this zone, we could continue buying with targets at $2,394 (the March 16 high) and ultimately at $2,500.
Conversely, if Ethereum continues its technical correction, breaks below the 200 EMA located around $2,109, and consolidates below this zone, we could expect a further bearish movement, potentially reaching the psychological level of $2,000 or even the 2/8 Murray level around $1,875.
The Eagle indicator is showing a bearish signal, hence a pullback toward the resistance zone of $2,320 to $2,350 is expected in the coming hours. This could put downward pressure below this zone and may be seen as a selling opportunity.
