Technical outlook:
Ether has pushed further higher to the $3,200 mark at this point in writing. The crypto has produced an impressive rally from $2,100 lows, adding almost 50% to its value and surprising traders who chose to remain bearish. Please note that one-year trend line support has been already broken and prices have also taken out initial support of around $2,680.
Ether is now unfolding a counter trend rally since $2,100 lows, which has the capacity to push through the $3,800-4,000 levels before terminating. Note that $4,000 is very close to the Fibonacci 0.618 retracement of the earlier drop between the $4,800 and $2,100 marks respectively. At the time of writing, the price is facing interim resistance around $3,200, which is Fibonacci 0.382 retracement of the above drop.
Ether might drop lower from here in the near term to the $2,500-2,600 zone, before resuming its last leg within the counter trend rally. Traders might lock in profits around the $3,200 mark and look to buy again lower toward $2,500 level. If bulls are successful in pushing above the $3,200 mark consistently, we can see the $3,800-4,000 levels sooner.
Trading plan:
Potential drop to $2,500-2,600 before rally resumes to the $3,800-4,000 mark
Good luck!
