Ethereum (ETH/USD) is trading around $1,814 with a bullish bias extending a rebound over the weekend above $1,650.
Ethereum could continue its rise over the coming hours, reaching the upper band of the uptrend channel around $1,860.
Following a consolidation above the 61.8% Fibonacci level and a recovery above the 1/8 Murray line, ETH gained bullish momentum. Over the past 24 hours, we saw a strong technical rebound, so the instrument is likely to resume its main downtrend in the coming days.
If ETH reaches the upper band of the uptrend channel around $1,860, or if bullish momentum prevails, ETH could reach the 200 EMA around $1,891 and the 3/8 Murray level around $1,875. If Ethereum approaches these levels, we could expect a strong technical correction to occur in this zone and a return to the 2/8 Murray levels around $1,750.
In case Ethereum loses its upward momentum from the $1,814 level, we could expect a technical correction toward the 2/8 Murray level at $1,750. Therefore, we could look for selling opportunities in the coming hours with targets at $1,750 and around the 21 SMA at $1,690.
The recovery in ETH/USD could encourage bears to take short positions, and we expect the price to return to the psychological level of $1,500 in the coming weeks.
The Eagle indicator has reached overbought levels. So, below $1,814, the market will likely undergo a technical correction in the coming days.
