FX.co ★ Ethereum: downside scenario intact

Ethereum drops like a rock in the short term as BTC/USD dropped as well. Technically, the bias remains bearish despite temporary rebounds. ETH/USD increased by 15.01% from last week's low of 1,218.80 to 1,401.70 today's high.

The altcoin dropped by 6.76% from today's high signaling strong sellers. You knew from my previous analyses that ETH/USD could extend its sell-off. Still, a larger drop needs confirmation.

ETH/USD Flag Pattern!

As you can see on the H4 chart, the rate came back to retest the broken uptrend line again. It has failed to stabilize above it or above the R1 (1,393) signaling downside pressure and strong sellers.

The price action developed a minor flag pattern which could activate a downside continuation.

ETH/USD Forecast!

A valid breakdown through the flag's downside line and below 1,255 signals more declines. The scenario brings short opportunities.