Ethereum reached a new high around 3,281. This level coincides with +1/8 of Murray which represents a zone of strong technical reversal. Because ETH is strongly overbought on the daily chart, a technical correction is likely to occur in the next few hours with the target at 8/8 Murray around 3,105.
If ETH trades below 3,281, it could reach the 21 SMA located at 3,086 and could finally find strong support and an opportunity for a technical bounce around the bottom of the uptrend channel that coincides with the psychological level of $3,000.
Ethereum has been very bullish because it is highly correlated with Bitcoin. Just as BTC could make a technical correction in the next few hours, it is also likely to drag this cryptocurrency and we could expect it to reach the psychological level of $3,000. If there is a break below this area, the price could reach the 200 EMA located at 2,705 in the next few days.
On the contrary, in case the bullish force prevails, we could resume long positions only if EH/USD consolidates above 3,280 or above 3,300 with the target at +2/8 of Murray located at 3,437.
The eagle indicator is giving a negative signal which means that a strong technical correction is likely to occur in the coming days.