Technical outlook:
Ethereum has now dropped close to $2,500, in line with the projections made during the last week when prices were trading close to $3,200. The proposed Gartley corrective structure looks complete now and it is advisable to take profit in short positions taken earlier. Bulls are looking inclined to be back in control anytime soon and push through $,3800-4,000.
Ethereum had earlier carved a meaningful upswing between $2,100 and $3,300 as seen on the daily chart presented here. The above upswing has been retraced through Fibonacci 0.618 levels close to $2,600. High probability remains for a bullish reversal from here and push through $3,800 before giving in to bears again.
Ethereum is also seen to be carving a potential Head and Shoulder reversal with Head around $4,900, Left Shoulder close to $3,800-4,000, and Neckline broken at $2,650. If the above holds well, prices are working to carve a potential Right Shoulder from current levels. Watch out for a rally to materialize through $3,800-4,000.
Trading plan:
Potential rally towards $3,800-4,000 against $2,100.
Good luck!
