The Ethereum rallied and reached the 527.10 high again, but is premature to talk about a larger rebound because the breakout needs confirmation. Price has finally managed to jump above the major downtrend line signaling that the corrective phase could be completed.

I’ve said since January that the major crypto will increase again and will reach at least the historical highs in the second part of 2018. Technically, the rate is somehow expected to drop a little to test and retest the broken dynamic resistance before will climb higher again.

Many specialists are very enthusiastic after the Bitcoin and Ether increase, but we should be very careful in the upcoming days because only a confirmation will bring us a great buying opportunity. I’ve said in the previous weeks that personally, I’ll wait for a perfect buying opportunity as the rate has shown some exhaustion signs.

The next leg higher will be a slower one but will bring us a great return on the medium to the long term.

The rate increased a little today, but failed to reach the yesterday’s high and could close the day below the 496.27 static resistance. Price was attracted by the confluence area formed between the fourth warning line (WL4) of the former descending pitchfork with the 250% Fibonacci line (ascending dotted line). Ethereum will become strongly bullish only after a valid breakout above the 250% Fibonacci line. Personally, I believe that the rate will take out the dynamic resistance from the second warning line (wl2) of the ascending pitchfork if will reach it.

I would like to see a consolidation here before the rate will start to increase again. A false breakout above the WL4 and above the downtrend line will signal another leg lower. It is very important to see what will happen on the Bitcoin because another drop may force the Ethereum to drop as well.