On September 3, the price of Ethereum reached the maximum of 4,024 and psychological level after consolidating for four days. On September 7, it made a sharp fall below this level, leaving an engulfing candle that covered the price of 29-day period daily high and low in the movement of Ethereum.
This bearish engulfing candle with more than 930 pips falling is a sign of a trend change or a correction that could last for a long time. The 4,000 level is seen as the top and the 1,500 level as the bottom.
According to the daily chart, the last candles show a consolidation in Ethereum. ETH is positioning below the SMA 21, leaving wicks which indicate that the bearish force is prevailing and buyers are decreasing. Every time the price hits new highs, the sellers enter from aggressively weakening ETH.
The psychological level of 3,000 has turned out to be the next support for Ethereum. This level coincides with the 6/8 murray line located at 3.125. A technical bounce at this level could be the key to restart the uptrend. In such a case, ETH is likely to rise to 4,024, and if the bullish move continues to rise, it could even retest the all-time high at 4,372.
The 200 EMA located at 3,334 on the 4-hour chart is now acting as dynamic support for Ethereum. As can be seen on the chart, the long tail on the day's candle shows that the bulls are willing to buy around 3,000. Therefore, this level will be a good opportunity to buy ETH.
The technical reading of the eagle indicator that measures the volume and strength of the market is showing a bearish signal. This means that in the coming days it could fall to the 6/8 support of murray. If the selling pressure intensifies below this level, it could fall to key 4/8 support around 2,500 and 200 EMA.
Support and Resistance Levels for September 10 - 13, 2021
Resistance (3) 3,708
Resistance (2) 3,636
Resistance (1) 3,530
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Support (1) 3,352
Support (2) 3,280
Support (3) 3,175
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Trading tip for ETH/USD for September 10 - 13, 2021
Sell if there is a pullback at 3,750 or sell below 3,500 (SMA 21), with take profit at 3,125 and 2,500 (EMA 200), stop loss above 3,900.
The material has been provided by InstaForex Company - www.instaforex.com