The price of Ethereum is plotting a pattern of a symmetrical triangle with a series of low and highs, but highs are getting shorter each time. At this moment, ETH is trading below the SMA of 21 located at 2,955 and below the EMA of 200 at 3,187. Both moving averages are exerting downward pressure. In addition to this, we can point out the bearish channel that originated from September 14.
The outlook for ETH looks negative with a probability of a drop to the level of 2,500. However, the lower line of the triangle is acting as an uptrend channel. Only a break and consolidation below this line and below Murray 2/8 will be the start of a new bearish wave with the target at 0/8 of murray (2,500).
On the other hand, a break of the upper line of the triangle, that has become a descending channel, would enable a bullish move, so Ethereum could rise to the 4/8 murray level located at 3,125 and up to the 200 EMA located at 3,187. A consolidation above the 200 EMA will be the start of a new bullish scenario, with targets at the 4,000 psychological level.
Since September 21, the price of Ethereum seems to have stabilized as buyers are entering the market. According to the eagle indicator, there is only an increase in a trade volume but the market force is running out. This is a negative sign, so we must be very careful.
As the secondary bullish channel remains intact, it could be a good opportunity to buy around the bullish channel support and at 2/8 murray located at 2,812, with targets at 2,955 and 3,155.
On the other hand, a sharp break below 2,790 will be a good opportunity to sell. The eagle indicator is showing a sign of the overbought market and a probability of a fall in the short term.
Support and Resistance Levels for September 29 - 30, 2021
Resistance (3) 3,125
Resistance (2) 3,027
Resistance (1) 2,968
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Support (1) 2,812
Support (2) 2,760
Support (3) 2,656
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Trading tip for ETH/USD for September 29 - 30, 2021
Buy if ETH rebounds at 2,812 (2/8) with take profit at 2,955 (SMA 21) and 3,125 (4/8), stop loss below 2,720.
The material has been provided by InstaForex Company - www.instaforex.com