Ethereum rebounded in the short term, and it seems determined to approach and reach new highs. It was located at 1,647 at the time of writing, far above Saturday's low of 1,558. As you already know from my previous analysis, the altcoin developed a bullish pattern.
Ethereum increased by 5.88% from Saturday's low to 1,650 today's high. Bitcoin's potential growth should force the ETH/USD to reach new highs as well. In the last 24 hours, the altcoin was up by 2.97%, but it's been in the red in the last 7 days.
ETH/USD downside seems over
Technically, the ETH/USD developed a flag pattern, which is seen as a bullish formation. You knew from analysis that the bias remains bullish as long as it stays above the lower median line (LML).
The downtrend line and the level of 1,676 represent immediate resistance levels. It remains to see how the rate reacts around these obstacles. False breakouts may announce a new sell-off in the short term.
ETH/USD outlook
A valid breakout above the downtrend line activates further growth and is seen as a long signal.
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