The ETH/USD pair is forming a downward trend, correcting against the long-term move: by now, the price has left the descending channel after breaking through its lower boundary and has started testing the support area at 2812.50–2720.00 (Murray level [1/8], 61.8% Fibonacci retracement). After a firm consolidation below this area, a decline toward 2187.50 (Murray level [–1/8]) and 1875.00 (Murray level [–2/8]) becomes likely. A consolidation above the resistance area at 3437.50–3540.00 (Murray level [3/8], 38.2% Fibonacci retracement, upper Bollinger Band) would allow the price to reverse the current trend and move toward 4062.50 (23.6% Fibonacci retracement, Murray level [5/8], upper boundary of the descending channel), 4687.50 (Murray level [7/8]) and 5000.00 (Murray level [8/8]).
The technical indicators maintain a sell signal: the Bollinger Bands and Stochastic are turning downward, the MACD histogram remains stable in negative territory, and on the weekly chart the price has reached the lower Bollinger Band, which increases the probability of a further downward move.
Support and resistance levels
Resistance levels: 3540.00, 4062.50, 4687.50, 5000.00.
Support levels: 2720.00, 2187.50, 1875.00.
Trading scenarios and ETH/USD forecast
Short positions may be opened below 2720.00 with targets at 2187.50 and 1875.00 and a stop-loss at 3100.00. Implementation period: 5–7 days.
Long positions may be opened above 3540.00 with targets at 4062.50, 4687.50 and 5000.00 and a stop-loss at 3240.00.
Scenario
| Timeframe |
Weekly |
| Recommendation |
SELL STOP |
| Entry point |
2700.00 |
| Take Profit |
2187.50, 1875.00 |
| Stop Loss |
3100.00 |
| Key levels |
1875.00, 2187.50, 2720.00, 3540.00, 4062.50, 4687.50, 5000.00 |
Alternative scenario
| Recommendation |
BUY STOP |
| Entry point |
3570.00 |
| Take Profit |
4062.50, 4687.50, 5000.00 |
| Stop Loss |
3240.00 |
| Key levels |
1875.00, 2187.50, 2720.00, 3540.00, 4062.50, 4687.50, 5000.00 |
cryptocurrency journalist and market analyst who has accumulated great experience. He shares practicable insight with traders, investors, and enthusiasts of the crypto world. John loves to explore the dynamic Web3 space, which involves blockchain technology or different coins besides decentralized applications (dApps) leading decentralized finance (DeFi), smart contracts or interoperability among blockchains, non-fungible tokens (NFTs), real-world assets (RWAs), and artificial intelligence combining blockchain. John has worked for leading cryptocurrency resources, among them FORECK.INFO, CoinGape, CryptoNews, and Business2Community
