Ethereum is trading in the green trying to erase the early morning losses. The price has registered a new historical high of 3,457.64, so a temporary decline is natural.
Ethereum remains bullish despite a temporary correction. Actually, the short-term decline could help us to catch a new upside momentum. It remains to see how it will react during the day because it could invalidate a decline if it stabilizes above the broken obstacles.
ETH/USD Bearish Engulfing!
ETH/USD was expected to increase further after registering a valid breakout above the red upside line of the former up channel. It has found strong resistance at the R2 (3,427.41), which's why it has decreased to retest the R1 (3,190.12).
Now the price is trapped between the R2 and R1 levels. Dropping and stabilizing below the R1 could signal a further decline towards the upper median line (uml) of the ascending pitchfork.
On the other hand, jumping and stabilizing above the R2 could signal further growth towards fresh all-time highs.
Ethereum Outlook!
The major bearish engulfing printed today signals that ETH/USD buyers are exhausted and that the price could slip lower. Still, the bias remains bullish in the short term as long as the rate stays above the R1 (3,190).
Consolidation above R1 could bring a new upside momentum and a new long opportunity.
