The Ether drops and reached new lows today, despite the breakout above a very important dynamic resistance. Price is trading in the red and resumed the last two day’s drop. The crypto market dropped significantly again, but this could be only a temporary one and the cryptocurrencies will increase again.

I’ve said in the last weeks that the Ether and the Bitcoin could drop to recapture more directional energy before will climb towards the historical high. There are many specialists that have sustained that the crypto market will crash, but personally, I’m still confident that the most important crypto will reach at least the highest high after this corrective phase.

I want to remind you that the fundamental factors have pushed the Ether down, it could move sideways on the short term before will have enough directional energy to start another bullish momentum.

You can see that the rate has finally managed to jump above the second warning line (wl2) of the former descending pitchfork, but failed once again to touch the downtrend line. Price tries to retest the broken level before will climb higher. Ether will increase significantly only after a valid breakout above the downtrend line. Right now is still under massive selling pressure, the perspective remains bearish as long as the rate is trapped within the major down channel.

It remains to see where will found a bottom because a drop below the 637 former low will confirm a further drop. Right now will be better to stay away because we don’t have a great trading opportunity, but I really hope that we’ll have one very soon. Personally, I’m waiting for a long opportunity on Ether and Bitcoin, but I need more confirmations before I will be 100% sure that they will move upwards again.