Ethereum dropped again as the Bitcoin has started a sell-off since Wednesday. We’ll see what will really happen in the upcoming days because if the Bitcoin will drop, then the Ether is expected to reach new lows as well.
The current drop it was somehow expected after the valid breakdown below a very important dynamic support. It has also failed to reach a dynamic resistance, so it is expected to approach and reach an important downside target in the upcoming days.
You can see that the rate has failed to reach and retest the downside 50% Fibonacci line of the descending pitchfork. It has slipped much below the 198.00 static support and now it could reach the 350% Fibonacci line of the former ascending pitchfork.
I’ve told you in the previous weeks that the rate is somehow expected to drop towards the lower median line (lml) again. I’ve said that only a false breakdown below the lower median line (lml) or a drop followed by a failure to reach the lower median line (lml) it will announce a potentially significant upside movement.
However, a valid breakdown will open the door for more drops. Technically, it is somehow expected to drop as the rate has failed to increase after the breakout from the former Falling Wedge. The perspective remains bearish on the Daily chart as the crypto market could crash if the Bitcoin will drop further.