Technical outlook:
Ethereum has dropped to $3,000 level on Monday, slightly higher than our projection. The crypto has found interim support and is trading close to $3,050 mark at this point in writing. Immediate price resistance is seen around $3,300 mark and a break higher is required to confirm a low is in place. There could be one more leg higher to complete the structure.
Ethereum has been unfolding a counter trend rally since $2,100 lows as seen on the chart here. The parallel channel also suggests there could be further upside left towards $3,800-4,000 zone. Also note that it is close to the Fibonacci 0.618 retracement of the entire drop between $4,850 and $2,100 levels. High probability remains for a bearish turn thereafter.
Ethereum is expected to find interim support around $2,900-3,000 zone and turn higher towards $3,800 mark going forward. Only a drop below $2,300 support will confirm that a meaningful top is in place and that bears are back in control. Traders could be preparing to initiate fresh long positions soon.
Trading plan:
Potential rally through $3,800-4,000 zone against $2,100 remains.
Good luck!
