Ethereum is trading in the red right now and seems exhausted already and could approach another downside target. The crypto drops as the Bitcoin decreased as well after the failure to increase further. I’ve told you in the previous weeks that you should be very careful and that you should wait for a confirmation that the major cryptocurrencies will increase significantly.

It remains to see what will really happen because this could still be a temporary drop on the short term before the rate will increase again. Technically, it was somehow expected to increase, but you should wait for a validation.

You can see that the rate has decreased after the failure to make new highs and after the failure to reach at least the 249.93 static resistance. It has retested the broken downtrend line (upside line of the chart pattern), but the buyers weren’t so strong to send the rate much higher.

I’ve told you in the previous reports that I’m afraid that the rate will come back and will reach the second warning line (WL2) of the former ascending pitchfork and maybe it will approach the lower median line (lml) if it will make a valid breakdown below the warning line.

I want to remind you that we may have a significant upside movement if the rate will fail to reach and retest the lower median line (lml) or if it will make a false breakdown below it. It could still increase from now without reaching the WL1,  but only a valid breakout above the 249.93 and above the downside 50% Fibonacci line of the descending pitchfork could signal a further increase towards the median line (ml). This scenario could take shape only if the Bitcoin will increase again as well.