Ethereum has got stuck around $2,331 within the bearish channel that formed on September 27. Over the course of several consecutive trading sessions, we have observed that it is under downward pressure.
Since the strong rally that reached the $2,500 area, the price has been unable to consolidate above the 200-period exponential moving average (EMA), as this area acts as a strong resistance level that coincided with the upper band of the bullish channel and kept the price under downward pressure.
Given that the price is below the 21-period simple moving average (SMA), we would expect the decline to continue in the coming days toward the Murray 6/8 level, located at $2,187, and it could even find strong support around the lower band of the downtrend channel, at $2,140.
Conversely, if a recovery occurs in the coming days, the price could be expected to reach strong resistance at the upper band of the downtrend channel, around $2,390; or, if a strong upward move occurs, ETH could encounter a significant barrier around the 200-period exponential moving average (EMA) at $2,460.
If this bullish scenario plays out and the price reaches solid resistance levels, it could be considered an opportunity to open short positions with targets at $2,352 and $2,187.
