Technical outlook:
Ethereum dropped through the $3,150 mark on Thursday before finding bids again and turning higher. The crypto is seen to be inching higher towards the $3300 mark at this point in writing and is expected to continue higher towards at least the $3800 mark. Bulls will remain poised to hold prices above $3,100 interim support to keep the structure intact.
Ethereum had earlier carved a meaningful downswing by dropping from $4,850 highs through $2,100 lows as seen on the daily chart here. The crypto has been working on the above downswing since then, unfolding a counter-trend rally towards the $3,800-4,000. Furthermore, the crypto seems to be into its last leg higher against $2,300 levels.
If the above structure holds well, Ethereum bulls will remain poised to push through $3,800 from here and terminate the counter trend rally. We can expect prices to sharply reverse thereafter and drag below $2,100 in the next several trading sessions. Traders remain cautiously bullish for the time beng.
Trading plan:
Potential rally through $3800-4000 mark against $2100. Then lower.
Good luck!
