Technical outlook:
Ethereum bulls have managed to push prices higher through $3,500 mark on Tuesday, falling in line with expectations. The initial fibonacci target have been hit around $3,510 level as seen on the daily chart here. Potential still remains for yet another high close to $3,800-4,000 mark, which is fibonacci 0.618 retracement of initial drop.
Ethereum had earlier dropped from $4,850 highs through $2,100 lows, carving a meaningful larger degree downswing. The above drop is being worked upon as bulls are unfolding a counter trend rally towards $3,800-4,000 zone. The counter trend is progressing since $2,100 lows and seem to be into its last leg higher.
Ethereum is also close to carving a potential right shoulder through $3,800-4,000 levels before turning lower again. The conventional Head and Shoulder reversal pattern is close to terminating its potential Right Shoulder before bears are back in control.They would remain poised to drag prices below $2,100 mark going forward.
Trading plan:
Potential profit booking seen close to $3,800-4,000 level.
Good luck!
