Ethereum drops like a rock and looks unstoppable on the short term. Price is trading in the red and accelerates the sell-off after an important breakdown. Technically, it should approach and reach fresh new lows in the upcoming period. The plunged much below the 300 psychological level and could reach the $250  in the upcoming days because is attracted by two important dynamic support levels.

The rate ignored the 50% Fibonacci line (ascending dotted line) and looks determined to reach new lows in the upcoming days. The current drop is natural after the retest of the inside sliding line (SL1) of the major ascending pitchfork, now is attracted by the upper median line (uml) of the descending pitchfork and by the sliding line (SL), we have an important confluence area formed between these two dynamic support levels. We’ll see if will reach the confluence level, should drop very fast to hit it, but one thing is almost certain, that the rate will reach and retest the SL. Ethereum is trapped within the SL1 and the SL2 and could resume this up channel after this retreat.

A buying opportunity could appear  if the rate will be rejected by the SL2 or if will fail to reach and retest this downside obstacle.