Ethereum was dropping like a rock at the time of writing. It was traded at 2872.10 at the time of writing far below today's high of 3103.46. Today's low stands at the 2803.20 level. ETH/USD could approach and reach this low as long as Bitcoin drops.
The cryptocurrency declines within a down channel. Only an upside breakout from this pattern may signal that Ethereum could register an upwards movement. ETH/USD dropped by more than 7.50% from today's high of 3103.46. The pressure is high, so a further drop is imminent.
Ethereum sell-off
Technically, ETH/USD failed to stay above the former low of 3,015 and above the 38.2% retracement level signaling a larger downside movement. It has printed a false breakout with great separation below the 50% (2,872.14) retracement level and under the S2 (2,807.92).
Unfortunately, the rate failed to come back and stabilize above the weekly S1 (3,068.20) indicating strong sellers.
ETH outlook
The failure to come back higher after printing the pin bar (false breakdown with great separation) signaled that ETH/USD could extend its correction. Dropping and stabilizing below the S2 (2807.91) announces a deeper drop towards the down channel's support.
Ethereum could develop an important upside movement only if it stays above the 50% and S1 level and most important if it makes a new higher high to jump and close above 3,103.46.
