Ethereum is traded at 3,983.79 far below 4,332.29 today's high. Bitcoin's drop forced the altcoins to decline as well. The crypto plunged below strong downside obstacles, so the sentiment changed.
In the short term, ETH/USD could approach and reach new lows after failing to approach and reach the previous highs. The cryptocurrency dropped by 9.17% from 4,332.29 daily high to 3,935.02 today's low. The bias is bearish right now, so more declines are expected.
ETH/USD door open for more declinesAs you can see on the h4 chart, ETH/USD dropped and closed below the uptrend line and under 4,025 static support. Its breakout through the confluence area formed at the intersection between the support levels announced strong seller and potential deeper drop.
Failing to take out the first warning line (wl1) and failing to stay above the upper median line (uml) signaled potential correction. 3,800 psychological level is seen as a downside target.
Ethereum forecastThe current breakdown below the upper median line, weekly pivot (4,043), 4,025, and through the uptrend line signals more declines. Testing and retesting the broken support levels could bring new short opportunities.
Failing to approach and reach 4,375 previous high or the 4,380.64 all-time high signaled a potential correction towards 3,800 or even lower to 3,677.