Technical outlook:
Ethereum has pushed through $3,050 highs, just breaking above the previous swing high around $3,045 early trading hours on Tuesday. The rally has been in-line with our projections and might accelerate further towards $3,300 from here. Only a break above $3,300 will confirm further highs as per price action theory.
Ethereum might face intrady pullbacks but they should be well capped above $2,400 mark. The crypto is breaking above its triangle consolidation structure since February 2022 and potential remains for a push through $3,800-4,000 mark. The recent rally could be seen as potential counter trend and is expected to terinate close to $4,000 mark before reversing lower again.
Ethereum has already carved a meaningful downswing between $4,850 and $2,100 levels as seen on the daily chart here. The above drop is being retraced and could terminate around fibonacci 0.618 levels close to $4,000 mark. We can expect a turn lower thereafter as bears prepare to drag below $2,100 mark.
Trading plan:
Potential rally through $3,800 and $4,000 against $2,100
Good luck!
