FX.co ★ Trading signal for Ethereum (ETH) on October 19 - 20, 2021: Sell below $3,700 (symmetrical triangle)

The second cryptocurrency with the highest market capitalization is consolidating below the SMA of 21 located at 3,813 and at the same time forming a symmetrical triangle. We can expect two scenarios if it consolidates above 3.815. There will be an opportunity to buy with a target at 3.906 and up to the psychological level of 40.062 (+2/8).

On the contrary, if Ether consolidates below 3,700 we should expect a sharp break below this level, and there may be an opportunity to sell with a target at 3,593 and it may fall to the 200 EMA located at 3,437.

Market optimism remains strong and many investors believe that BTC may rise to the $70,000 level. If this happens, a bullish movement could occur and Ethereum could reach 4,500. Meanwhile it is observed that BTC and ETH are showing overbought levels.

The eagle indicator that measures the strength and volume of the market is showing a slightly sloping neutral signal, which means that a strong correction in Ether could occur in the coming days.

Our forecast is to expect a sharp break below the symmetrical triangle pattern at 3,700, and thus be able to sell with targets at the 200 EMA located at 3,437.

Support and Resistance Levels for October 19 - 20, 2021

Resistance (3) 4,062

Resistance (2) 3,983

Resistance (1) 3,906

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Support (1) 3,761

Support (2) 3,673

Support (3) 3,593

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A trading tip for for October 19 - 20, 2021

Sell below 3,700 (symmetrical triangle) with take profit at 3,593 and 3,437 (EMA 200), and stop loss above 3,800.