FX.co ★ Ethereum back tests broken resistance trend line.

Ethereum after reaching as high as $3,285, has pulled back towards $2,830. Price initially broke out and above the downward sloping trend line resistance and reached the 38% Fibonacci retracement of the entire decline. Now price it testing the broken trend line from above. Previous resistance is now support.

Black lines -Fibonacci retracements

Blue lines -expected equal leg higher

Ethereum ideally will bounce off the red trend line as it tests it from above. Price can start a second upward leg towards the 61.8% Fibonacci retracement which is key Fibonacci resistance. We continue to expect that the decline from its all time highs has been completed and that Ethereum is at least making a counter trend move higher. This bounce is expected to reach the 61.8% retracement level or a little bit higher, in order to make a second up leg similar in size to the first bounce.