FX.co ★ ETH/USD in buying zone again

The price of Ethereum crashed in the short term and now is trading at 1,940 at the time of writing. The altcoin dropped by 10.61% from Sunday's high of 2,140 to 1,913 today's low. Still, the bias remains bullish in the short term despite the current retreat.

The rate could only test and retest the near-term support levels before developing a new leg higher. ETH/USD is down by 2.26% in the last 24 hours and by 3.09% in the last 7 days. Bitcoin's correction forced Ethereum to turn to the downside as well.

ETH/USD Natural Retreat!

ETH/USD tested and retested the upper median line (uml), registering only false breakouts. The price action signaled exhausted buyers, so the current retreat was natural.

As you can see on the H4 chart, the rate reached the 1,942 downside obstacle (resistance turned into support) and now is almost to hit the median line (ml). As long as it stays above the media line (ml), the altcoin could develop a new leg higher.

ETH/USD Outlook!

Staying above the median line (ml) and making a bullish closure above 1,982 brings new longs.