Ethereum is trading back below the $2,030 August high this week, suggesting a bearish deviation that could push the market lower.
You can see how this $2,000 area is also the top of an ascending channel from December.
This week’s drop puts ETH back inside this structure, which means the latest rally above $2,000 is a deviation, also called a fakeout.
Deviations like this tend to send a market in the opposite direction.
However, ETH is catching a few bids today at former range highs in the $1,920-$1,935 region.
That said, I’m certainly not interested in longing Ethereum, given the breakdown we saw earlier today from BTC.
I mentioned the significance of Bitcoin’s quarterly open in Wednesday’s article.
As for Ethereum, a sustained break below $1,920 would open up the March range highs and quarterly open between $1,820 and $1,835.
If we see a bounce from the $1,920 region, levels like $1,980 and $2,000 are ones to watch.
I remain short from $2,118, a position I took earlier this week and added to it earlier on Thursday at $1,976.
I announced both positions in real-time in the member Discord group.
