Ethereum is narrowing on the Daily chart, but you should be prepared for a significant movement soon because it cannot move like this forever. You should stay away for now and wait for a fresh trading signal. The perspective remains bearish on the Daily chart as we don’t have a reversal signal at this moment.

However, it remains to see if this will be an accumulation or a distribution movement. Price has started to make higher lows, so the behavior could change, but it is still premature to talk about a significant upside movement at this moment.

You can see that the rate has failed to reach and retest the 249.93 static resistance in the previous attempts, but the sellers weren’t so strong to force the rate to make a valid breakdown from the extended sideways movement.

It could approach and reach the downside 50% Fibonacci line of the major descending pitchfork in the upcoming days, where it could find a very strong resistance again.  Support can be found at the 350% Fibonacci line as well.

I’ve told you in the previous weeks that personally, I would have liked to see a decrease towards the lower median line (lml) of the major descending pitchfork and a false breakdown below it or a failure to reach it will really signal an important upside movement.

However, a failure to breakdown below the 198.00 psychological level it will signal a potential breakout above the 249.93 and above the 50% Fibonacci line of the descending pitchfork and the rate could move towards the median line (ml).