Ether is currently declining. It has signaled exhausted buyers, so the current decline is natural. Actually, the price of ether drops because the price of bitcoin drops as well.
As you already know from my analysis, the altcoins drop when the price of Bitcoin goes down. ETH/USD dropped by 2.71% in the last 24H and by 3.15% in the last 7 days. Technically, the outlook is still bullish in the short term despite the current decline.
ETH/USD Overbought!
Ethereum failed to reach the 61.8% retracement level or to stabilize above the ascending pitchfork's upper median line (UML). This was a strong overbought signal. Now is pressuring the 50% (3,054.07) retracement level and is almost to reach the weekly S1 (3,025.60).
The ascending pitchfork's upside 50% Fibonacci line is seen as dynamic support as well. Personally, I believe that the bias remains bullish as long as it stays above the ascending pitchfork's median line (ML).
Dropping below the S1 and through the 50% Fibonacci line signals a potential decline towards the median line (ML). Still, Ethereum is located in a strong support zone, so a bullish pattern here could bring is a new long opportunity.
Forecast!
Ethereum dropped but it could still increase as long as it stays above the 50%, S1, and above the 50% Fibonacci line. False breakdown with great separation through these downside obstacles could signal that the retreat is over.
Unfortunately, the pressure is high after confirming its breakdown through the upper median line (UML).
