Since September 29, Ethereum started a bullish wave. It still remains within this channel. However, it could be reaching oversold levels and approaching the strong resistance located in the zone of 5/8 of a murray around the psychological level of 5,000.
In view of the fact that a doji is forming in the last daily candle, this technical figure signifies market indecision and will be a sign that the bullish force is running out and there could be a correction in the next few days.
Therefore, as long as ETH remains below 4,800, we could sell with targets towards the bottom of the uptrend channel around 4,470.
The level of 4,470 coincides with the 6/8 of murray and with the SMA of 21. A strong technical rebound is expected around this zone which could give the necessary momentum to reach the psychological level of 5,000.
The outlook in the short and medium term for Ethereum continues to be bullish. It is likely that in the next few hours there will be a technical correction only to trigger a new momentum so that ETH can reach the zone of 8/8. Therefore, we must wait for this key level of support around 6/8 of murray with the purpose of buying Ether.
The eagle indicator still has bullish ground to reach the overbought levels. Therefore, this selling strategy makes sense only if Ether remains below the 4,800 level. If ETH breaks this zone, we should avoid selling and wait for the next resistance at 8/8 murray.
A sharp break and a consolidation through a daily close below the level of 4,375 (6/8) and below 4,330 (SMA 21) will be a negative signal for Ether and the beginning of a bearish scenario. So, ETH could fall down to the level of 3,750 (4/8) and lower to the 200 EMA located at 3,050.
Our trading plan for the next few hours is to sell below 4,800 little by little until ETH reaches a key support of 4,375. This level coincides with the lower line of the uptrend channel and will be for us a new opportunity to buy with targets towards the $5,000 (8/8).
Support and Resistance Levels for November 09 - 10, 2021
Resistance (3) 5,000
Resistance (2) 4,922
Resistance (1) 4,843
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Support (1) 4,687
Support (2) 4,549
Support (3) 4,476
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A trading tip for Ethereum for November 09 - 10, 2021
Sell below 4,800 (strong resistance) with take profit at 4,470 (SMA 21), stop loss above 4,870.
The material has been provided by InstaForex Company - www.instaforex.com