Technical outlook:
Ethereum has rallied alongside its counterpart Bitcoin through $3,100 levels as expected and discussed earlier. We have been calling for a potential counter trend rally to materialize and push prices higher up to $3,800-4,000 levels before finding resistance. Prices should ideally stay above $2,100 interim support in the near term.
Immediate price resistance on the daily chart is seen just above $3,350,followed by $3,800 and higher. The crypto is expected to rally at least through $3350 before turning lower again. A break higher would open the door through $3,800 and $4,000 levels respectively. Please note that $4,000-4,100 should offer strong resistance if prices manage to reach there.
Ethereum's wave structure is also unfolding a bearish Head and Shoulder pattern since $4,850 all-time highs. Head is marked at $4,859 and Neck line around $2,680 level, which has been taken out. The Left Shoulder is seen around $4,000-4,150 zone, and potential Right Shoulder might be underway. If the above us correct, prices are expected to reach at least $4,000 before turning lower again.
Trading plan:
Potentia rally through $3,800-4,000 against $2,100
Good luck!
