Ethereum (ETH/USD) is trading around $2,305, below the 21SMA and within a descending trend channel formed on April 17th. This indicates exhaustion of the upward momentum and suggests a likely decline in the coming days.
After a strong push towards the $2,400 zone, ETH failed to consolidate above this level, resulting in a technical correction. ETH has shown weakness in recent hours, and a sharp break below the main ascending trend channel around $2,300 could be seen as a sell signal, with targets around the 200-period moving average of $2,230. It could even reach the lower band of the descending trend channel around $2,180.
If ETH/USD recovers in the next few hours and reaches the upper band of the descending trend channel around $2,375, it could be seen as an opportunity to open short positions with targets at $2,300 and $2,230 around the 200 EMA.
A sharp break of the ascending trend channel formed since March 30th and consolidation below the 200 EMA around $2,230 could signal the start of a new bearish scenario, and we could expect Ethereum to reach the low of $1,845 around the 6/8 Murray in the coming days.
The Eagle indicator is showing a negative signal. So, if there is a pullback towards the resistance zone of $2,380, it could be considered an opportunity to open short positions.
