Technical outlook:
Ethereum dropped lower through $2,600 mark during the Asia Session on Thursday, after printing an intermediate high close to $2,800 mark earlier. The recent drop could be corrective as bulls remain inclined to push prices higher through $3,800-4,000 zone. A push above $3,000 mark will accelerate further and confirm a potential bottom around $2,450 mark.
Ethereum has already carved a meaningful bearish boundary between $4,850 and $2,100 levels earlier. The crypto is seen to be producing a counter trend rally towards sub $4,000 mark before finding resistance and resuming lower again. Bulls need to hold prices above $2,100 mark to keep the bullish scenario intact in the near term.
Ethereum might be carving a potential Head and Shoulder reversal as discussed earlier. The Head is around $4,850, while Left Shoulder is now seen around $3,800-3,900 zone and Neck line broken around $2,680 mark. If the above is correct, the crypto might be underway to terminate a potential Right Shoulder around $3,800-4,000 mark.
Trading plan:
Potential rally through $3,800-4000 against $2,100.
Good luck!
