FX.co ★ Ethereum Rejected By Confluence Area

Ethereum drops like a rock right now after failing to take out the immediate resistance levels. It seems very heavy in the short term, so we cannot exclude a deeper drop. The price of Bitcoin drops right now, so ETH/USD decline is natural.

Technically, the retreat could be a temporary one. Ethereum is still located above strong downside obstacles. It could only test and retest the immediate support levels before turning to the upside again.

ETH/USD Sell-Off

Ethereum drops after failing to make a valid breakout through the confluence area formed between 2,389 with the inside sliding line (sl). Now is pressuring the weekly pivot point (2,224.27).

Closing and staying under the pivot point could signal a potential drop towards the ascending pitchfork's lower median line (lml).

Forecast!

This could be only a temporary drop. Maybe we'll have new opportunities from the lower median line (lml) of the ascending pitchfork. 2,040 is seen as major static support as well.

Coming back above the weekly pivot point (2,224.27) could bring us a new buying signal with the first upside target at the sliding line (sl). The bias could remain bullish in the short term as it stays above the lower median line (lml).