Ethereum dropped after reaching 1,663 in yesterday's trading session. It is trading sideways in the short term. As you already know, the altcoin turned to the upside as the price of Bitcoin rallied. Technically, the bias remains bearish on the medium to the long term despite the current leg higher. A larger growth needs strong confirmation.
Ethereum dropped by 9.90% from yesterday's high of 1,663 to 1498.93 today's low. In the short term, BTC/USD retreated, that's why the altcoins lost altitude as well. BTC/USD's deeper drop should force ETH/USD to turn to the downside.
ETH/USD Retests The Buyers!
ETH/USD rallied but it has failed to reach the 1,730 key level which represents an upside obstacle. Now, it has developed an up-channel pattern. The channel's downside line and the 1,444 low represent downside obstacles.
As long as it stays above these downside obstacles, the bias remains bullish. Still, you have to keep in mind that the swing higher could be over anytime.
ETH/USD Forecast!
A new lower low, making a valid breakdown below 1,446 could activate a new sell-off. Registering false breakdowns below the flag's downside line and through the 1,446 may announce that ETH/USD could still resume its upwards movement.
