Technical outlook:
Ethereum is preparing to rally toward $3,800-4,000 zone in the next few trading sessions as presented on the daily chart here. The crypto is seen to be bouncing back higher yet again from its support around $2,500 mark. It is trading just below the $2,600 handle at the time of writing and looking poised to push further. It should accelerate above $2,730 mark going forward.
Ethereum had earlier dropped from $4,850 through $2,100 mark, carving a meaningful bearish boundary. The down swing needs to be retraced through $3,800 mark at least, which is the Fibonacci 0.618 level of the above drop. If the above structure holds well, bulls will resume its final wave within the corrective rally that had begun since $2,100 mark.
The corrective phase has completed/terminated two waves around $3,200 and $2,300 mark respectively. The third wave is close to resuming higher towards $3,800 levels at least. Only a consistent break below $2,100 levels will change the structure and bring back bears into control.
Trading plan:
Potential rally through $3,800-4,000 against $2,100
Good luck!
