ETH/USD (Ethereum) is trading around $3,194 below the 21 SMA and around the 200 EMA, showing overbought levels and undergoing a strong technical correction after reaching the 3/8 Murray.

After reaching the top of the uptrend channel and the 3/8 Murray zone, both levels acted as strong resistance. Unable to find more demand above $3,437, Ether made a sharp technical correction and is now likely to continue falling in the coming days until it reaches the psychological level of $3,000.

If ETH/USD consolidates above the 200 EMA and above the 21 SMA in the coming hours, we can expect a recovery, and it could return to the 3/8 Murray resistance zone and even reach its weekly high around $3,450.

A sharp break of the uptrend channel formed since November 21 and a consolidation below $3,000 could signal a change in the trend for Ether, which could reach the 0/8 Murray $2,500 at around $2,500.

The outlook remains bullish for ETH/USD, provided that it reaches the 2/8 Murray support located at $3,125 in the coming hours or the bottom of the uptrend channel around $3,050, which will be seen as an opportunity to take long positions.