Ethereum dropped again and now is traded near a major and critical support zone. Technically, it has printed a minor Falling Wedge pattern, but this formation is far from being confirmed, so the bias remains bearish.
The price of bitcoin dropped as well, so you don't want to be long on altcoins as long as BTC/USD drops. Bitcoin is also located above major support, a new swing higher will definitely bring a leg higher on ETH/USD.
ETH/USD Falling Wedge!
ETH/USD failed to stay above the weekly S1 (1,988.87), so it could come back to reach 1,850 static support. The S2 (1838.86), the downtrend line, and the pattern's downside line are representing support levels as well.
Staying above all these levels and making an upside breakout from the Falling Wedge pattern could really bring a buying opportunity. Actually, I believe that an accumulation followed by an upside breakout through 2,040.40 could really activate a fresh swing higher.
Ethereum Forecast!
Buy a potential comeback above 2,040.40 former high and use the 2,389.00 as a potential upside target. Only a valid breakout through this level may confirm a larger growth.
The material has been provided by InstaForex Company - www.instaforex.com