On Tuesday, I wrote about how the Ethereum correction odds had increased following the break below the $1,600 critical level.
Not only is that a key level, but the March open is $1,605, making it even more significant.
ETH is down 8% since then and was down nearly 12% at Friday’s low.
Currently, Ethereum is battling with the $1,420 area, which is still serving as key support on a daily closing basis.
However, I expect more downside for ETHUSD toward the June 2021 trend line at $1,300.
That aligns with Bitcoin reaching my March target of $18,400, which I wrote about two days ago, as there’s still considerable liquidity to be taken below $19,000.
That’s approximately 8% lower for both BTC and ETH.
From there, it will be essential for Ethereum bulls to keep ETH above that trend line to avoid a more significant correction toward $1,000.
But I’m not confident that Ethereum can avoid a $1,000 retest, given that the S&P 500 broke back below its all-time high trend line today.
That’s something I mentioned on Twitter earlier in the day.
The S&P 500 managed to hold above its March 2020 (COVID) channel support but closed below the all-time high trend line at 3,910.
For now, though, $1,420 is support as long as ETH can close today above it, and key resistance is $1,500.
I continue to favor shorting bounces for a move into the $1,300 to $1,340 support area.
