FX.co ★ Ethereum new sell-off could be activated

Ethereum dropped in the short term as the price of Bitcoin plunged. ETH/USD is traded at 2,620.07 at the time of writing above 2,572.66 today's low. It has dropped by 8.62% from Monday's high of 2,815.49 to today's low.

The price action developed an up channel which represents a potentially bearish pattern. Still, a larger downside movement is far from being confirmed, that's why we have to wait for confirmation before taking action.

In the last 24 hours, ETH/USD is down by 2.92%, while in the last 7 days, the crypto is up by 12.03%.

ETH/USD Bearish Pattern!

As you can see on the H4 chart, ETH/USD dropped below the uptrend line, under the channel's downside line. Still, personally, I'll wait for the price to confirm the breakdown before considering going short.

The breakdown could be invalidated, that's why is premature to talk about a downside movement. Technically, the up-channel could announce a new sell-off. Ethereum failed to come back towards the channel's upside line signaling exhausted buyers.

ETH/USD Prediction!

Staying below the broken uptrend line and dropping below 2,572.66 today's low could activate more declines and could bring new short opportunities.