Technical outlook:
Ethereum dropped through $2,950 mark on Wednesday in line with our projection. The crypto has found interim support and managed to bounce back through $3,060 mark at the time of writing. It is quite possible that a meaningful higher low is now in place and bulls are preparing to push higher through $3,800-4,000 zone going forward.
Ethereum has found support around fibonacci 0.50 retracement of the recent upswing between $2,300 and $3,500 levels respectively. If bulls are able to hold prices above the $2,300 mark, the next target should be around $3,800-4,000 mark in the next few trading sessions. Also note the parallel channel resistance is passing through $3,800 levels.
Ethereum had earlier dropped between $4,850 and $2,100 mark carving a meaningful bearish boundary. Since then, the crypto has been working on the above drop and is retracing higher toward $3,800 at least. Please note that the above is close to fibonacci 0.618 retracement of the earlier downswing and hence potential remains high for a turn lower.
Trading plan:
Potential rally through $3,800 against $2,100
Good luck!
