FX.co ★ Ethereum upside invalidated, larger drop to be activated

Ethereum crashed in the short term and it seems very heavy, so more declines are in the cards. The altcoin was trading at 1,431 at the time of writing above today's low of 1,405. ETH/USD dropped by 21.45% from Sunday's high of 1,789 to today's low.

In the last 24%, the altcoin is down by 4.16% and by 16.29% in the last 7 days. The bias is bearish, so ETH/USD could drop towards new lows at any time.

ETH/USD Challenges Key Support!

As you can see on the H4 chart, the price failed to stay above the channel's upside line signaling exhausted buyers and a potential deeper drop. It has ignored the uptrend line and now it challenges the 1,424 static support.

After its massive drop, we cannot exclude a temporary rebound. False breakdowns may signal a bounce back towards 1,560.

ETH/USD Forecast!

A valid breakdown below 1,424, a new lower low, dropping and closing below 1,405 may signal more declines and could bring short opportunities.