In our last analysis on Ethereum we noted how vulnerable price was and the potential for a deeper decline towards $1,800. Right now price is trading at $1,803 as trend remains bearish in the short-term, with price making lower lows and lower highs.
Ethereum has so far reached the 100% Fibonacci extension of the first part of the decline. Price remains in a bearish trend. For trend to change to bullish, we will need at least a move above $1,920. The new low in price was not followed by a new low in the RSI. This is a bullish divergence. This is the first warning that the downtrend is weakening.
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