Ethereum (ETH/USD) is trading inside an uptrend channel formed since Jan 24 and above the 21 SMA. We can see that Ether maintains a bullish bias, but it is capped by the line of 1/8 Murray at 2,812.
As long as Ether continues to consolidate above the 21 SMA, there is a possibility of approaching the 200 EMA around the psychological level of 3,000.
An immediate barrier is near the level 2,812 (1/8 Murray). A clear move above the zone of 2,850 could set the pace for a higher rally towards 200 EMA at 3,015 and up to 2/8 Murray at 3,125.
Conversely, if Ether fails to consolidate above 2,850, a technical correction is likely towards the 21 SMA at 2,641 and towards the bottom of the uptrend channel around 2,600.
The eagle indicator reached the overbought zone around 95-points. This is a sign that an imminent correction could occur in the coming days.
If the bearish pressure accelerates and the price of Ether breaks below the 21 SMA located at 2,641, the dominant bearish movement could resume and the price could fall towards the zone -1/8 Murray located at 2,187.
Our trading plan for the next few hours is to sell below 1/8 Murray located at 2,790 or wait for a technical bounce around 2,600 to buy. On the other hand, a daily close above 2,850 will be a signal to buy with targets towards the 200 EMA at 3,015.
Support and Resistance Levels for February 2 - 3, 2022
Resistance (3) 3,039
Resistance (2) 2,895
Resistance (1) 2,812
----------------------------
Support (1) 2,703
Support (2) 2,615
Support (3) 2,500
***********************************************************
Scenario
Timeframe H4
Recommendation: sell below
Entry Point 2,790
Take Profit 2,641 (21 SMA), 2,500 (0/8)
Stop Loss 2,860
Murray Levels 2,187(-1/8) 2,500 (0/8) 2,812 (1/8) 3,125 (2/8)
***************************************************************************