Price dropped and erased the last three day’s gains, but maintains a bullish perspective on the short term. The rate has decreased sharply, but this could still be a temporary retreat because is located above important support levels (resistance turned into support).

Remains to see what will happen in the upcoming days because we may have a trading opportunity very soon.

You can see that the rate drops very fast and ignored the support from the upper median line (uml) of the descending pitchfork. Now is pressuring the 50% Fibonacci line (ascending dotted line), a valid breakdown below this line followed by a retest of the upper median line (uml) of the descending pitchfork will confirm a further drop towards the lower median line (lml) of LML of the ascending pitchfork.

Ethereum will increase further only if will have enough energy to stay above the upper median line (uml) and above the 50% Fibonacci line (ascending dotted line). A buying opportunity will appear if the rate will retest 50% Fibonacci line and if will increase.

Bitcoin Edges Higher

Bitcoin rallies and reached new highs, we’ll see how will react in the upcoming days because has touched the upper median line (uml) of the ascending pitchfork. A valid breakout will confirm a further increase  while a false breakout  will announce a minor correction phase.

Bitcoin is strongly bullish on the short term and seems unstoppable, right now we can’t talk about a decrease. Resistance can be found at the 4951 previous high as well, even if the rate will close above the upper median line (uml) of the ascending pitchfork.