ETH/USD is bullish again after failing to close below a support area. Technically, a rebound is natural after the amazing sell-off. It has found strong support and now it has taken out a dynamic resistance.
It's trading at 2,422.06 versus 1,730 yesterday's low. Now is located right below a static resistance. Registering a valid breakout could signal broader growth. Ethereum dropped by more than 60% since May 12, 2021, but now, the rate seems poised to come back higher.
ETH/USD Turned To The Upside!
I've told you in my previous analyses that the bias remains bearish as long as the price stays below the first warning line (wl1) of the descending pitchfork. ETH/USD has found support on the $1,930 level registering only a false breakdown through 1,800 psychological level and below the upper median line (uml).
Taking out the weekly pivot of 2,472.27 should indicate a potential growth towards 2,800 and 3,000 levels. Being rejected by the weekly pivot or registering only a false breakout could signal that ETH/USD may drop a little towards the 2,200 - 2,000 area.
Ethereum Forecast!
The aggressive breakout through the warning line (wl1) signaled that the downside movement could be over. Still, we cannot exclude a temporary decline from the weekly pivot.
Actually, a temporary decline could help us to catch a new upwards momentum. Personally, I would like to see consolidation and other false breakdowns below the immediate support levels before really developing a new swing higher.
