Technical outlook:
Ethereum has dropped through its potential support around $2,550-2,600 zone yet again on Friday. The structure continues to remain constructive for bulls until prices stay above the $2,300 handle. Bulls might be inclined to push through $3,850-4,000 levels in the next few trading sessions, provided that $2,300 and $2,100 remain intact.
Ethereum is probably into its last leg rally within the corrective phase that had begun since $2,100 levels. A push above $2,800-3,000 mark will open the door to test $3,300 and further. Potential remains for the counter trend to terminate close to $3,500 and $4,000 levels going forward. It is also the Fibonacci 0.618 retracement of the previous drop between $4,850 and $2,100 levels respectively.
Ethereum has already carved a meaningful downswing between $4,850 and $2,100 levels, which is being worked upon. Bears will be poised to come back in control from close to $4,000 mark going forward. A consistent push above $4,200 will push prices through all-time highs above $5,000 levels.
Trading plan:
Potential rally through $4,000 against $2,100.
Good luck!
