Ethereum registered a strong sell-off in the short term. The pressure remains high, so the crypto may lose more ground anytime. Bitcoin's drop forced the altcoins to drop as well. In the short term, ETH/USD stands below strong upside obstacles, that's why more declines are in cards.
In the last 7 days, Ethereum is down by 12.54% and only by 2.11% in the last 24 hours. The cryptocurrency is into a corrective phase. In the short term, it could only test and retest the near-term resistance levels before dropping deeper.
ETH/USD door open for more declines
Ethereum has found support on the Descending Pitchfork's lower median line (LML) and now it challenges the weekly S2 (4,236.10) and the Ascending Pitchfork's upper median line (uml). As long as it stays below these upside obstacles and under the Descending Pitchfork's median line (ML), ETH/USD could resume its corrective phase.
In the short term, the bias is bearish, so personally, I'll wait for a strong bullish pattern before considering going long again.
Ethereum prediction
After dropping below the Ascending Pitchfork's upper median line (uml), ETH/USD signaled strong bearish pressure and potential further drop. Now it has come back to retest the upside obstacles.
A larger downside movement could be activated by a new lower low, by a bearish closure below 4,065.00. I believe that only coming back and stabilizing above the upper median line (uml) and above the median line (ML) could invalidate a deeper drop and could signal an upside continuation.
