Ethereum temporary retreat?

Ethereum dropped and at the time of writing it was traded at 2,997. The crypto slipped lower as the price of Bitcoin retreated. Technically, ETH/USD escaped from an up channel which could represent a bearish pattern. Still, a larger downside movement is far from being confirmed. This could be only a temporary drop, ETH/USD could only test and retest the immediate support levels.

ETH/USD dropped by 7.38% from 3,199 Tuesday's high to 2,962 today's low. If the price of Bitcoin activates a larger drop, ETH/USD could extend its current sell-off.

As you can see on the H4 chart, the price is still located far above 2,830 static support and above the broken downtrend line. It has found resistance at the weekly R1 (3,160) and at the up channel's support.

The price action could develop a range pattern between 2,830 and 3,284 levels. Escaping from this pattern could bring great opportunities.

If the price stays above the 2,830 static support and makes a new higher high, a valid breakout above the 3,284 will activate an upside continuation. A new selling signal may be announced by a valid breakdown below 2,830.