Early in the American session, Ethereum (ETH/USD) is trading around 2,305.73 with a bullish bias gained since January 24. Ether has strong resistance around 2,339, a level that coincides with 7/8 Murray, with the 200 EMA, and a little higher with the top of the bullish channel.
In the event that ETH attempts to break the 200 EMA and fails, it could be seen as an opportunity to sell with targets at the bottom of the uptrend channel around 2,275 or around the 21 SMA around 2,279.
If Ether in the next few hours makes a technical correction and consolidates above 200 EMA (2,340) or after a technical correction, if it trades within the uptrend channel and bounces around 2,275 (21 SMA) it could be seen as an opportunity to buy and could reach 8/8 Murray around the psychological level of 2,500.
On the contrary, in the event that ETH breaks sharply below the bullish trend channel, we could expect the bearish cycle to resume and it could fall towards 6/8 Murray located at 2,185 and finally could reach the psychological level of $2,000.
Technically, ETH/USD is facing a strong resistance zone located at 2,340. Below this level there is an opportunity to sell but above this zone the cryptocurrency could gain strong bullish momentum and we should avoid selling.
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