Current trend

Last week, the ETH/USD pair was actively declining as part of the general market trend and tested the level of 2812.50 (Murrey level [2/8], Fibonacci retracement 50.0%) in the area of three-month lows; however, to date, some of the lost positions have been restored.

The level 2812.50 still remains key for the "bears" and consolidation below it will allow the instrument to continue its downward dynamics to the area of 2500.00 (Murrey level [2/8], Fibonacci retracement 61.8%) and 2343.75 (Murrey level [−1/8]), which is also confirmed by technical indicators: Bollinger Bands are directed downwards, MACD is stable in the negative zone, and Stochastic has reversed upwards, not excluding a correction, but its potential seems limited. To change the current trend, quotes need to overcome the level of 3281.25 (Murrey level [5/8]), supported by the center line of Bollinger Bands, and then the movement will continue with targets of 3437.50 (Murrey level [6/8], Fibonacci retracement 23.6%) and 3750.00 (Murrey level [8/8]). However, such a scenario seems less likely in the near future.

Support and resistance

Resistance levels: 3281.25, 3437.50, 3750.00.

Support levels: 2812.50, 2500.00, 2343.75.

Trading tips

Short positions could be opened below 2812.50 with targets at 2500.00, 2343.75 and stop-loss at 3000.00. Implementation period: 5-7 days.

Long positions may be opened above 3281.25 with targets at 3437.50, 3750.00 and stop-loss at 3170.00.