Technical outlook:
Ethereum is pulling back lower towards $2,900 levels after printing intraday highs above $3,050 on Tuesday. The crypro might drift lower through $2,600-2,700 levels before finding support again and pushing through $3,800-4,000 mark. Prices need to break its trading range between $2,400 and $3,100 levels to determine further direction.
Ethereum has been drifting sideways since printing $3,300 highs in February 2022. If the consolidation pattern is that of bearish triangle, prices would reverse from here and continue dropping below $2,100 mark. In case of a bullish triangle, the crypto will find support ahead of $2,400 mark and resume its rally through $3,800-4,000 levels.
Ethereum has already carved a downswing between $4,850 and $2,100 levels earlier. Furthermore, its initial support is also broken around $2,680 mark. A counter trend rally might be unfolding from $2,100 levels and could terminate around $4,000 mark before bears are back in control. A clear break above $3,300 will accelerate and confirm towards $3,800-4,000 range.
Trading plan:
Potential rally toward $3,800-4,000 against $2,100
Good luck!
