Technical outlook:
Ethereum rallied through $2,850 mark on Thursday falling in-line with expectations and breaking out of the consolidation range. The crypto still needs to push above $3,100 mark to accelerate further. Bulls will remain inclined to hold prices above $2,300 and subsequently $2,100 mark to keep the structure intact.
Ethereum is working upon its recent pswing between $2,100 and $3,300 levels and has found support around $2,300 mark. If correct, the next leg should be higher towards $3,800-4,000 mark before it faces resistance. Also note that fibonacci 0.618 retracement of the above downswing between $4,850 and $2,100 is seen towards the $3,800-4,000 mark.
Ethereum bears will remain poised to be back in control from $3,800 levels after carving a potential Right Shoulder as depicted on the daily chart here. Only a push through $4,200 mark consistently, will change the bearish view as bulls would be inclined to test $4,850 highs. Watch out for a break above $3,100 for the short term rally to accelerate.
Trading plan:
Potential rally through $4,000 against $2,100 mark.
Good luck!
