Ethereum has decreased on the short term and has retested a broken dynamic resistance. The resistance has turned into support, so maybe the rate will try to increase again after this temporary drop. I’ve told you in the previous days that the rate could drop after the minor rebound. Personally, I was expecting this decrease because this could give us a great chance to go long again. Right now the rate is fighting hard to recover, so maybe will be better to wait for a confirmation that the rate will increase again.

It is very important what will really happen on the Bitcoin in the upcoming period. A Bitcoin’s increase will force the Ethereum and the other Altcoins to increase as well. On the other hand, a Bitcoin’s drop will crash the crypto market.

Price has retested the broken downtrend line (upside line of the major chart pattern) and now tries to climb higher. I’ve told you in the previous days that a retest followed by an important increase will signal a buying opportunity. Personally, I would have liked to see a false breakdown or a failure to retest the downtrend line. It could still try to retest the downtrend line and the second warning line (WL2) of the former ascending pitchfork.

I want to remind you that only a valid breakdown below the WL2 and most important below the lower median line (lml) it will really signal a further drop.

An upside movement will be confirmed after a valid breakout above the 255.00 former high. Right now it is premature to talk about a larger upside movement after today’s minor rebound. A potential larger upside movement could appear if the rate will stay away from the lower median line (lml).