Technical outlook:
Ethereum had dropped through sub $2,500 levels on Tuesday before finding support again. The crypto has now reversed sharply and is seen to be trading aroud $2,650 level. Bulls have finally managed to produce an Engulfing Bullish reversal pattern on the daily chart as marked in pink rectangle. The Gartley corrective structure is now looking complete.
Ethereum bulls might be preparing for the next leg higher towards $3,800-4,000 mark going forward. Also note that prices have bounced higher from the Fibonacci 0.618 retracement of the recent upswing between $2,100 and $3,300 levels respectively. High probability remains for a push through $4,000 levels with $2,100 interim support intact.
Ethereum is within a couter trend rall since $2,100 lows and is just about to resume its third leg higher. A consistent push above $4,350 will confirm that the crypto is heading towards a new all-time high. We shall take a review around $4,000 levels again and decide whether to exit longs and initiate fresh short positions.
Trading plan:
Potential rally through $4,000 against $2,100.
Good luck!
