Technical outlook:
Ethereum slipped further to $2,950 on Monday before finding some bids. The crypto is seen to be trading marginally higher around $3,000 mark at this point in writing and is expected to push higher towards $3,800-4,000 from here. Bulls need to hold prices above the $2,300 mark to keep the structure intact and push higher.
Ethereum has been unfolding a counter trend rally from $2,100 lows as seen on the daily chart here. The parallel channel is also pointing towards $3,800-4,000 range before terminating. Also note that prices have found support around the Fibonacci 0.50 level of the recent upswing between $2,300 and $3,580 levels respectively.
High probability remains for a bullish turn from current levels and push through $3,800-4,000 mark. Furthermore, the above zone is close to fibonacci 0.618 retracement of earlier drop between $4,850 and $2,100 respectively. Ethereum bears will be looking to turn prices lower from close to $4,000 mark going forward.
Trading plan:
Potential rally through $3,800-4000 against $2,100. Then lower.
Good luck!
