FX.co ★ Ethereum: bearish formation violated

The price of Ethereum is located at 1,964 at the time of writing. Technically, the price action signaled that the short-term rebound ended and that the altcoin could extend its downside movement. Still, a deeper drop needs confirmation as BTC/USD signaled exhausted sellers as well.

The altcoin is down by 0.46% in the last 24 hours and by 0.17% in the last 7 days. In my opinion, only Bitcoin's deeper drop should force ETH/USD to hit new lows.

ETH/USD 1,854 As Support!

ETH/USD escaped from the flag pattern but it has found support on the former low of 1,854. So, this represents a key downside obstacle. As long as it stays above it, the rate could jump higher towards the descending pitchfork's upper median line (UML).

As you can see on the H4 chart, the rate found support on the median line (ML) which stands as a dynamic support.

ETH/USD Outlook!

A new lower low, dropping and closing below 1,854 may announce more declines. This could bring new shorts to this market. The median line (ML) remains a potential downside target if the rate continues to drop.