The price of Ethereum (ETH) is forming an ascending wedge technical pattern. This technical figure represents a trend reversal. Thus, we must wait for confirmation through the breakdown and consolidation below the lower line, and below the SMA of 21 located at 3,522.
As long as the price continues to oscillate within this pattern, the bullish force is still prevailing and there could be a technical rebound from the 21 SMA, targeting the strong resistance of 8/8 murray located at 3,750. If the bullish force prevails, ETH could rise to the psychological level of 4,000.
The eagle indicator is showing an overbought signal. The oscillator has reached the level of 95 which is a sign of an imminent technical correction. Hence, we must wait for the ETH price to hold below 3,500. Then, the fall will occur until the 200 EMA located at 3,261.
Support and Resistance Levels for October 08 - 11, 2021
Resistance (3) 3,859
Resistance (2) 3,750
Resistance (1) 3,674
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Support (1) 3,507
Support (2) 3,437
Support (3) 3,332
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Trading tip for Ethereum for October 08 - 11, 2021
Sell below 3,450 with take profit at 3,261 (EMA 200), stop loss above 3,535.
The material has been provided by InstaForex Company - www.instaforex.com