Technical outlook:
Ethereum has dropped back through $3,300 at this point in writing after having pushed through $3,500 highs over the weekend. The crypto is expected to find support aroundthe $3,200 mark and push higher towards $3,800-4,000 mark before resuming lower again. The past resistance turned support zone is seen through $3,250 mark.
Ethereum is already into the last leg of its counter trend rally, which had begun since $2,100 lows. The first wave terminated around $3,260-3,300 zone, followed by the second wave dropping through $2,300 mark respectively. Since then, bulls have managed to carve a third wave rally through $3,580 before pulling back.
Also note that prices have tested the Fibonacci 0.50 retracement of the earlier drop between $4,850 and $2,100 levels. Potential still remains for yet another push through $3,800-4,000 zone, which is fibonacci 0.618 retracement of the above drop. Bears would be inclined to come back in control thereafter and drag prices below $2,100 mark.
Trading plan:
Potential rally through $3,800 against $2,100 then lower.
Good luck!
