Current trend

Last week, the ETH/USD pair was actively declining within the general market trend, and yesterday the quotes reached the lowest values since January in the area of 2120.00.

Currently, the instrument has regained some of its lost positions, but has consolidated below the resistance level of 2500.00 (Murrey level [0/8], 61.8% Fibonacci retracement), which preserves the possibility of resuming the decline to the levels of 2187.50 (Murrey level [-1/8]) and 1875.00 (Murrey level [-2/8]). The key for the "bulls" is the resistance zone of 3085.00–3125.00 (Murrey level [2/8]), supported by the central line of Bollinger Bands, with a breakout of which growth can resume to the targets of 3437.50 (Murrey level [3/8], 23.6% Fibonacci retracement) and 3750.00 (Murrey level [4/8]).

Technical indicators confirm the formation of a downtrend: Bollinger Bands are reversing down, MACD is growing in the negative zone, however, Stochastic's reversal upward from the oversold zone and the price chart going beyond the lower line of Bollinger Bands do not exclude a corrective growth to the area of 2812.50 (Murrey level [1/8], 50.0% Fibonacci retracement), 3125.00 (Murrey level [2/8]), but it is unlikely to lead to a change in the current downtrend.

Support and resistance

Resistance levels: 3125.00, 3437.50, 3750.00.

Support levels: 2187.50, 1875.00.

Trading tips

Short positions can be opened from the 2375.00 mark with targets of 2187.50, 1875.00 and stop-loss of 2577.00. Implementation period: 5–7 days.

Long positions can be opened above 3125.00 with targets of 3437.50, 3750.00 and stop-loss of 2900.00.