Yesterday, Ethereum fell from its highs in the zone of +2/8 of murray of 4,375 to the low of $3,580. The asset showed more than a 19% fall in a single day. For several days, we were commenting that the ETH/USD pair was in the overbought zone and this downward correction was imminent.
Also yesterday, BTC fell sharply from a high of $58,000 to a low of $46,100.
However, on Thursday, ether recovered after it found support in the 3,600 area. It is consolidating above the 200 EMA on the 4-hour chart.
Despite the decline, the eagle indicator is showing a bullish rebound towards the 21 EMA zone located at the psychological level of 4,000.
Conversely, fixation below 3,750 may cause more significant downward pressure on Ethereum. The target is located at 3,437, the 7/8 murray zone. There is a possibility of a long-term trend reversal.
If the asset consolidates above the psychological level of 4,000, it will advance to its maximum of 4,375. Otherwise, we recommend continuing to sell within the bearish channel.
Support and Resistance Levels for May 13 - 14, 2021
Resistance (3) 4,133
Resistance (2) 3,988
Resistance (1) 3,896
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Support (1) 3,697
Support (2) 3,601
Support (3) 3,460