08.02.202220:13 Forex Analysis & Reviews: Ethereum false breakout?

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Ethereum was trading in the red at the 3,052.46 level at the time of writing. After its amazing rally, a temporary decline is natural. Still, the retreat may be only a temporary one. It can only test and retest the immediate support levels before resuming its growth.

ETH/USD drops following the price of Bitcoin. Also, BTC/USD's retreat may be only a temporary one. Ethereum dropped by 6.14% from today's high of 3,234.67 to the 3,036.11 daily low.

ETH/USD up channel

As you can see on the h4 chart, the price jumped above the downtrend line, above the down channel's upside line but it has failed to stay near today's high. Now, it challenges the downtrend line. Staying above it may signal that ETH/USD could resume its growth after a temporary retreat.

Technically, ETH/USD is located within an up channel. In my opinion, as long as it stays above the uptrend line, the bias will remain bullish in the short term.

ETH/USD prediction

A valid breakout above the downtrend line could announce a potential upside reversal. Testing and retesting the downtrend line and staying above the uptrend line could bring new long opportunities.

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