Ethereum despite the pull back has held its price inside the short-term bullish channel. Price has respected the channel boundaries at the recent pull back and continues higher. Price could very well make new highs soon, but the recent pull back has confirmed the importance of the channel boundary.
Green lines - bullish channel
Red lines - bearish divergence
The RSI bearish divergence is still here and traders need to remain cautious. Price is making higher highs but not the RSI. This implies that the up trend is weakening. As long as price is inside the bullish channel we remain bullish. Support is at recent low of $3,108. Breaking below this level is justified according to the warning from the RSI bearish divergence. Breaking below this level will be a bearish signal and we will expect price to make a deep pull back towards $2,800-$2,700.
