Ethereum is dropping right now after failing to approach the immediate resistance levels. It could drop to test and retest the immediate support levels before jumping higher again. The selling pressure remains high in the short term despite the most recent bounce.
Bitcoin is under pressure as well, so a further drop registered by BTC/USD could force the altcoins to decline. Technically, a temporary decline could help us to catch a new upwards momentum.
The bias is bullish in the short term, despite the current decline. An upside breakout through the immediate obstacles could bring new opportunities.
ETH/USD Temporary Decline?
Ethereum failed to reach the 50% Fibonacci level and the weekly R1 (2,842.67) in the current attempt signaling a potential decline towards the weekly pivot (2,461.20).
The price action develops a triangle pattern. A valid breakout from this pattern may bring us a great trading opportunity. An upside breakout could really announce a bullish reversal, a strong swing higher in the coming period.
Ethereum Outlook!
A false breakdown with great separation through the weekly pivot point (2,466.09) or below the uptrend line could bring a new buying opportunity. Also, a major bullish engulfing printed on these levels could signal a bullish momentum.
A great buying opportunity could be signaled by an upside valid breakout from the current triangle, through the R1 (2,842.67), and most importantly, above the 3,000 psychological level.
The upside scenario could be invalidated by a drop and stabilization below the immediate uptrend line.
