ETH/USD is trading with a bullish bias around $2,363 within the uptrend channel but showing signs of exhaustion. We believe that a technical correction toward the 21 SMA at $2,317 could occur in the coming hours, after which ETH could resume its bullish cycle.
The instrument consolidated over the weekend within the uptrend channel, making brief movements. During today's Asian session, Ethereum made a strong move above $2,130, but this is likely just a false breakout, after which the price will resume its downward movement.
If ETH consolidates above $2,390 in the coming hours, we could expect it to continue rising and potentially reach the 8/8 Murray line around $2,500.
There is strong weekly resistance around $2,390, and Ethereum is likely to face downward pressure below this zone, so we could expect a technical correction toward the lower band of the trend channel at $2,300.
A drop below $2,300 could signal a trend reversal for Ether, potentially reaching the 200 EMA around $2,215 and possibly even hitting the 7/8 Murray level around $2,187.
As long as the price continues to trade within the uptrend channel, any pullback toward the lower band of this channel could be considered a signal to open long positions.