Ethereum dropped in the last hours and erased the morning gains. Price rebounded in the last days, but it seems exhausted on the Daily chart, we’ll see what will happen in the upcoming days because it could drop sharply again. Technically, it is showing some exhaustion signs again, a drop looks favored at this moment.

Ethereum is approaching the 450 psychological level again and is trying to erase the yesterday’s gains. A drop below the 450 level will signal a further drop on the short term, it could come back down to retest the 415.28 static downside obstacle. You should be careful if you sell Ethereum because we could have only a temporary retreat as the perspective remains bullish on the Daily chart despite a minor drop. Selling Ethereum or Bitcoin is not recommended because are still very attractive and could hit historical highs anytime.

You can see that the rate failed to reach and retest the inside sliding parallel line (SL) of the ascending pitchfork. Price narrows on the short term and looks undecided, but it could start a significant move very soon, remains to see the direction. I’ve said in the last report that only a valid breakdown below the median line (ML) will signal a larger corrective phase. We had a false breakdown in the last attempt, that’s why the rate has increased again in the last week. Technically, it seems too overbought to pass above the 497 historical high.

It could move in range on the short term before will start to increase again. However, a valid breakdown below the 415 will signal a drop towards the 310 static support and towards the lower median line (LML) of the ascending pitchfork, but now is premature to talk about a larger drop as we have a bullish bias.