Ethereum dropped again after reaching the 3,000 psychological level. Now it is trading at 2,712.65 level. The pressure is still high as the price is trapped below a dynamic resistance level.
ETH/USD increased, but we still need confirmation before really deciding to go long on this crypto. It could still drop anytime as long as it stays under 2,800 level. Technically, the price could come back down to test and retest some support levels before really developing a strong swing higher.
ETH/USD Still Bearish!
As you can see, ETH/USD is still located below the first warning line (WL1). Staying below it could drag the price down again. It could also stay above the weekly S2 (2,730.22), so a potential drop is imminent.
Only a valid breakout above the warning line (wl1) could indicate a potential growth. It could come down to test and retest the 61.8% retracement level before deciding its direction. The decline could be only a temporary one.
The false breakdown with great separation below the S3 (2,117.85) signaled that the decline could be over.
Outlook!
A valid breakout above the warning line (wl1) could bring us a good long opportunity. Also, a temporary decline may offer us a new chance to catch a swing higher.
We may have a long opportunity also if ETH/USD increases from here making a valid breakout above the $3,000 level.
