Technical outlook:
Ethereum has dropped through $2,975 mark after producing a lower degree rally between $2,950 and close to $3,150 levels earlier. The recent drop could be seen as corrective and bulls might be back in control soon. They need to hold prices above $2,300 mark though, to keep the structure in their favor for medium term.
Ethereum had found support around the Fibonacci 0.50 retracement of the recent rally between $2,300 and $3,500 respectively as presented on the daily chart. Prices are also being supported around the past resistance zone close to $2,980 mark. If the above structure holds well, the crypto could be well on its way toward $50,000-55,000 zone from here.
Ethereum had earlier carved a larger degree downswing between $4,850 and $2,100 levels. The crypto is now retracing within a counter trend rally since $2,100 mark, which is in its last wave higher. Potential remains for prices to reach through $3,800-4,000 mark to complete the structure and resume lower again.
Trading plan:
Potential rally through $3,800-4,000 mark against $2,100.
Good luck!
