While consolidating above the psychological level of $3,000, Ethereum (ETH/USD) is facing a zone of strong resistance located at the 7/8 Murray line around 34,437.
On the chart, we can see the formation of the Ascending Wedge technical pattern. A break above its upper edge could give the momentum to Ethereum to the resistance zone of $3,437.
On the contrary, a break below the technical pattern and consolidation below 6/8 of Murray and below the SMA of 21 will be considered a sell signal with the target at $2,812. If the bearish pressure persists, it will push the price to the key support at $2,500.
As long as it remains above the 2/8 Murray line and the 21 SMA, the outlook will remain bullish for ETH. The price may continue to climb to the level of $3,500 in the near term and reach the psychological level of $4,000.
The Eagle indicator has reached overbought levels. It suggests that consolidation or correction is possible. The first sign of weakness will be a breakout and a close below $3,000.
Support and Resistance Levels for August 11 - 12, 2021
Resistance (3) 3,446
Resistance (2) 3.338
Resistance (1) 3,296
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Support (1) 3,136
Support (2) 3,004
Support (3) 2,840
The material has been provided by InstaForex Company - www.instaforex.com