Early in the European session, ETH/USD is trading around 2,881.47 reaching a new high at 2,893. Over the weekend, Ether resumed its bullish cycle from the low of 2,717 and is now approaching a key weekly resistance zone of 2,900. If the bullish trend prevails, it could reach the psychological level of $3,000.
ETH/USD is overbought, so a technical correction is likely to occur in the next few hours. The first support is 2,800. Once this level is broken, the price could reach the monthly pivot point of 2,500.
If the bullish force runs out and Ether trades below 2,900, a technical correction could occur towards the key support of 6/8 Murray, an area that also converges with the 21 SMA that has become a key reversal point. If bearish pressure prevails, we could expect it to reach the bottom of the uptrend channel around 2,690.
In case ETH finds good support around 2,802, we could expect the bullish cycle to resume and then the price could reach 7/8 Murray at 2,968 and could even reach the target desired by the bulls around the psychological level of $3,000. Therefore, if this scenario occurs, we could buy above 2,802.
Ether has been showing signs of exhaustion. This latest momentum could mean that the market is about to make a reversal as a technical pattern called head & shoulders could be forming.
If Ether continues trading below 2900, it could fall towards the psychological level of 2,500 in the short term, which coincides with the 200 EMA located at 2,493.
The eagle indicator showing an overbought signal since February 13. Thus, any technical bounce and trading below 7/8 Murray will be seen as an opportunity to sell with a short-term target of 2,500.