After having risen to the price level of May 12, 2021, Ethereum is making a technical correction. Yesterday there was an attempt to approach the high of 4,375, but the crypto failed to achieve its goal. Now in the American session, we notice that the bulls are getting exhausted and technical indicators are showing an overbought signal, which means that there could be a downward movement in the next few days.
We expect a sharp break below the 21-moving average located at 4,121. Besides, we foresee a break and consolidation below the uptrend channel that comes from September 26. Once these steps are confirmed, there could be a fall towards the EMA of 200 around 3,690. For us, it will be a good selling opportunity.
We could expect the uptrend to continue. For this, Ethereum must remain intact, trading above the uptrend channel. If ETH bounces at the bottom of the channel it would mean that the buying pressure continues to prevail and the price could break the level of 6/8 of the murray and go up to 7/8 of murray around 4,687.
Our trading plan for the next few hours is to sell ETH below the second one-month high that was around 4,250 and below the formation of the double-top pattern, with targets at the uptrend channel. If this channel is broken, we could sell with targets at 4/8 murray around 3,750.
Support and Resistance Levels for October 26 - 27, 2021
Resistance (3) 4,395
Resistance (2) 4,330
Resistance (1) 4,252
----------------------------
Support (1) 4,062
Support (2) 3,896
Support (3) 3,750
***********************************************************
A trading tip for Ethereum for October 26 - 27, 2021
Sell below 4,200 (double top) with take profit at 4,100 (SMA 21) and 3,690 (EMA 200), stop loss above 4,375.