Technical outlook:
Ethereum pushed close to $3,300 mark on Wednesday as discussed and expected before pulling back. The crypto is seen to be trading just below the $3,200 levels and could be underway toward $2,600, before resuming its rally. Bulls might want to remain in control until prices stay above the $2,100 interim support carved on January 24.
Ethereum has also managed to reach the Fibonacci 0.382 retracement of the earlier drop between $4,850 and $2,100 level around $3,300 and is expected to face resistance. Bulls are expected to ake a pause for the next few trading sessions as prices ease off through the $2,600 potential support zone. Also note that the Fibonacci 0.618 retracement of recent upswing between $2,100 and $3,300 is seen through $2,600 level.
High probability remains for Ethereum to produce a bullish reversal if prices manage to drop through $2,600 mark. The crypto may be poised to push through $3,800-4,000 zone thereafter, which is also fibonacci 0.618 retracement of the earlier downswing between $4,850 and $2,100. It is also potential Right Shoulder as discussed earlier.
Trading plan:
Potential drop to $2,600 near term, then rally to $3,800-4,000 levels against $2,100
Good luck!
