Early in the Asian session, Ethereum (ETH/USD) is trading above the 21 SMA and above the support 0/8 Murray.
Since January 24, Ether has been recovering from the low of 2,151 and is trading inside an uptrend channel.
In the next few hours, Ether is expected to bounce around $2,500 at 0/8 Murray or above the bottom of the bullish channel around 2,450.
The eagle indicator gave an overbought signal on Sunday. A confirmation of the breakout of the uptrend channel and a daily close below 2,500 is expected.
If Ether manages to consolidate above 2,500 a recovery could occur with targets towards 1/8 Murray located at 2,812 and up to the 200 EMA around 3,059.
Conversely, if Ether trades back below 2,450 the drop could accelerate towards support at 2,187 around -1/8 of a Murray.
Ether is positively correlated with the Nasdaq 100, which rose on Friday approaching the level of 14,500 points.
If the Nasdaq-100 falls below 14,000 points again, it could affect the strength of Ether and fall back to the level of 2,150.
Our trading plan for the next few hours is to buy ether only if it consolidates above 2,500 with targets at 2,812 and until 3,059 (200 EMA). On the contrary, if it trades below 2,450, it will be a bearish signal and we can sell with targets at 2,185.
Support and Resistance Levels for January 31 - February 1, 2022
Resistance (3) 2,795
Resistance (2) 2,667
Resistance (1) 2,574
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Support (1) 2,473
Support (2) 2,422
Support (3) 2,229
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Scenario
Timeframe H4
Recommendation: buy above
Entry Point 2,500
Take Profit 2,812 (1/8); 3,059 (200 EMA)
Stop Loss 2,400
Murray Levels 2,187 (-1/8) 2,500 (0/8) 2,812 (1/8) 3,125 (2/8)
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