Ethereum continues to drop and is very close to hit a very strong dynamic support. Price dropped today after two days of indecision. I’ve told you in the previous reports that the rate should drop further after a valid breakdown below a very strong dynamic obstacle.

The Ethereum’s current drop it was expected as the Bitcoin has slipped lower on the short term and it has ignored some very important downside obstacles.

Bitcoin has changed little in the last days and now is trading at 6247 level, much above the 6000 psychological level. However, the Bitcoin has broken below a very strong dynamic support, so a breakdown below the 6000 level is favored. Ethereum will drop further if the Bitcoin will resume the bearish movement.

Ethereum should reach the lower median line (lml) of the descending pitchfork in the upcoming hours where it could find a temporary support. I’ve told you in the previous report that the rate could be attracted by the confluence area formed at the intersection between the lower median line (lml) with the second warning line (WL2) of the ascending pitchfork, but maybe the rate will make a breakdown through the lower median line (lml) sooner than expected.

Price could move towards the 136.12 static support if it will ignore the lower median line (lml). Personally, I believe that only a false breakdown below the lower median line (lml) will signal a potential rebound.

It is also important how the rate will react when it will reach the WL2. The perspective remains bearish because we don’t have any reversal signs. Ethereum will drop much below the 100 psychological level if the Bitcoin will make a valid breakdown below the 6000 psychological level.