Ethereum is trading in the red right now at 2,338.81 and it seems vulnerable to drop in the short term after failing to stabilize above strong resistance levels. The price of Bitcoin has found strong resistance as well, so its current decline could signal a potential drop registered by the altcoins.
ETH/USD has registered an important growth in the short term, so a short-term decline is natural. Technically, the cryptocurrency has reached strong resistance, supply, zone. A minor decline could help us to buy it from a demand area, support.
ETH/USD Another False Breakout!
ETH/USD is located below the R1 (2,357.50) and under the ascending pitchfork's median line (ML). The most recent false breakout above the median line and through the 2,389.00 static resistance signaled an overbought situation.
Stabilizing below these levels could signal a temporary decline towards the downside 50% Fibonacci line or even lower. Now, only a valid breakout through 2,389 could validate further upside movement.
Conclusion!
Another false breakout above the immediate resistance levels could bring us a selling opportunity in the short term.
On the other hand, consolidating around the current levels and making a valid breakout above the 2,389 level may signal upside continuation!
The material has been provided by InstaForex Company - www.instaforex.com