Ethereum: upside still possible

Ethereum dropped in the short term also because BTC/USD slipped lower. It is testing and retesting the near-term downside obstacles. Despite the current retreat, the altcoin could still try to develop a new upside momentum.

ETH/USD dropped by 6.86% from Saturday's high of 1,234 to 1,149 today's low. BTC/USD's deeper drop should force Ethereum to drop deeper.

ETH/USD Retests The Buyers!

Technically, the altcoin is trapped between 1,215 and 1,147 levels. Now, it is challenging the weekly pivot point of 1,167. After escaping from the down channel, the pair was expected to develop a new leg higher, but unfortunately, it failed to stabilize above 1,215.

The downtrend line and 1,215 represent upside obstacles, while 1,147 represent a downside obstacle.

ETH/USD Forecast!

A new lower low, dropping below 1,147 activates a deeper drop, while a valid breakout through the downtrend line and above 1,215 signals a larger rebound.