FX.co ★ Ethereum upside invalidated, 2,160 stands as downside target

Ethereum was traded at 2,425.51 at the time of writing. Yesterday, it climbed as high as 2,725.60 where it found resistance. The downside pressure remains high as the price of Bitcoin slipped lower after registering a false breakout above the near-term upside obstacle.

ETH/USD dropped by 13.57% from yesterday's high to 2,355.61 today's low. In the short, the crypto could move sideways before deciding direction. Bitcoin's deeper drop could force the price of Ethereum to come back down towards 2,160 former low.

ETH/USD bearish bias

ETH/USD increased after reaching the major channel's downside line. As you already know from my previous analysis, the cryptocurrency was expected to register only a temporary rebound. I've told you that the level of 2,655 stands as a static resistance, an upside obstacle.

It's trapped between 2,160 and 2,655.05 levels. The rate could come back down to test and retest the downside obstacles. False breakdowns or a strong bullish pattern around 2,160 could announce a new bullish momentum.

ETH/USD prediction

The false breakout with great separation above 2,655.05 signaled that buyers are exhausted. That's why the rate is expected to come back down towards 2,160. Strong sideways movement above this downside obstacle may bring new long opportunities.