Ethereum dropped further and resumed the last two day’s drops. Has fallen again below the 300 psychological level  and looks determined to reach new lows in the upcoming days. The rate has shown some exhaustion signs, it seems like that the rate is too overbought to increase further at this moment. Remains to see what will happen because the current drop could be only temporary, we still need a confirmation that will drop in the upcoming period.

The rate is almost to hit the 50% Fibonacci line (ascending dotted line), which represents a strong dynamic support. Technically, it should take out the support from the 50% line after the failure to reach and retest the upper median line (uml) of the descending pitchfork.

A valid breakdown below the 50% line will confirm a further drop in the upcoming period. The failure to reach and retest the upper median line (uml) should send the rate towards the median line (ml) of the descending pitchfork. However, a rejection from the 50% Fibonacci line will send the price much above the upper median line (uml) and will confirm a further increase in the upcoming period.

We may have a selling opportunity if will drop and will stabilize below the 50% Fibonacci line (ascending dotted line). A buying opportunity will appear only after a valid breakout from the descending pitchfork’s body.