Ethereum has decreased again as the Bitcoin plunged on the short term. We’ll see what will happen in the upcoming days because the rate approaches a very important dynamic support. A valid breakdown below the near-term support level will signal a potential further drop.
If you’ll read the previous reports on Ethereum, you will notice that I’ve talked about a temporary rebound on the short term after the failure to reach a very, very strong downside target.
I’ve told you in the previous weeks that the crypto market will crash if the Bitcoin will drop again. So, the Ethereum’s drop is natural.
Ethereum failed to reach and retest the downside 50% Fibonacci line of the descending pitchfork and now is almost to reach the third warning line (WL3) of the former ascending pitchfork. The rebound was natural after the failure to reach and retest the lower median line (lml) of the descending pitchfork. I’ve told you in the previous reports that the rate is still expected to approach and reach the WL3 of the ascending pitchfork. A valid breakdown will signal a further drop towards the lower median line (lml).
Ethereum should start an important upside movement if the rate will fail to reach or if we’ll have a false breakdown below the 83.00 level. However, a failure to reach and retest the lower median line (lml) will signal a potential broader upside movement. A further drop will be confirmed if the rate will make a valid breakdown below the 83.00 level and if it will reach the lower median line (lml).