Ethereum drops after the yesterday’s impressive rally and could invalidate a crucial breakout. Price is pressuring a broken dynamic resistance, we’ll see if this it was a valid breakout or not. The rate moves in range on the short term, but I hope that we’ll have a clear direction very soon because it cannot move like this too long. Ethereum rallied in the yesterday’s trading session and erased the last two day’s losses and invalidated a further drop towards a very strong dynamic support.

The rate jumped above the sliding line (SL) of the descending pitchfork, now has come to test this broken obstacle. I’ve said in the last days that a valid breakout above this line will confirm a slow increase, only a valid breakout above the 50% Fibonacci line (ascending dotted line) will signal a strong bullish momentum.  A false breakout above the sliding line (SL) will send the rate at least till will reach the inside sliding line (sl2) of the major ascending pitchfork.

Technically is somehow expected to climb much higher after the failure to reach and retest the upper median line (uml) of the descending pitchfork, the behavior is changing on the short term as the rate has started to make higher lows.

Bitcoin Further Increase Confirmed

Bitcoin increased sharply today and tries to reach the 7427 yesterday’s high. Price remains strongly bullish on the Daily chart  and should reach fresh new highs in the upcoming days. Price failed to stay higher yesterday and has closed right above the broken fourth warning line (wl4) of the former descending pitchfork and invalidated an increase towards the confluence area formed between the WL3 of the ascending pitchfork with the fifth warning line (wl5) of the descending pitchfork. The next upside target will be at the wl5, where it could find resistance again. Technically, the rate could reverse from the fifth warning line (wl5), but is premature to talk about this because we don’t have any reversal sign at this moment.