Technical outlook:
Ethereum prices have turned lower towards $2,600 as expected and projected earlier. The crypto had pushed through $3,300 mark on Thursday before reversing sharply along with most risk assets. Bears are now looking poised to remain in control over the near term as prices have produced an Engulfing Bearish candlestick pattern on the daily chart.
Ethereum has marginally print above its previous swing high around $3,285 before turning lower. Please note that we have been calling a reversal in the near term since the crypto was close to fibonacci 0.382 retracement of its drop between $4,850 and $2,100 levels respectively. After facing interim resistance close to $3,300 mark, prices are now expected to find support close to $2,600 mark.
Also note that $2,600 levels are close to the fibonacci 0.618 retracement of the recent upswing between $2,100 and $3,300 levels respectively. High probability remains for a bullish bounce if prices manage to reach there. On the flip side, a consistent push above $3,300 will continue pushing higher through $3,800-4,000 levels, the projected Right Shoulder.
Trading plan:
Potential drop to $2,600 mark then rally through $3,800-4,000 levels,
Good luck!
