The rate dropped aggressively today and invalidated a potential larger rebound at this moment. Ethereum dropped as much as 432 level and retested a dynamic support again. Price opened with a huge gap down today and resumed the bearish momentum.

Ether has squeezed after the amazing drop and maybe will try to close the morning gap in the upcoming days. The crypto market crashed again and is premature to talk about a broader rebound at this moment because the major cryptocurrencies are trapped below some very strong resistance levels.

Ethereum is on a  declining path and could drop further if will fail to stay somewhere above the 500 psychological level. Right now we don’t have a reversal sign, so will be better to stay away for now because we don’t have any trading opportunity. Personally, I’ll wait for a buying opportunity, but I need a strong confirmation that the rate will turn to the upside again.

The rate dropped much below the 500 psychological level, but failed to stay below this static support. It could try to close the today’s gap down and could try to recover after the impressive bearish movement. Ether will increase significantly only after a valid breakout above the major downtrend line, but now will be better to stay away because a valid breakdown below the 500 psychological level will signal a further drop.  The perspective remains bearish as long as the rate is trapped within the down channel’s body, so only a breakout from this pattern will signal a broader rebound. It remains to see what will really happen in the upcoming  days after the retest of the second warning line (wl2) of the minor descending pitchfork and after the failure to close the day near it.