Technical outlook:
Ethereum is still unfolding its corrective drop, which began from sub $3,500 levels, and is expected to terminate close to $2,780 levels. The crypto is expected to resume its rally thereafter and push prices through $3,800-4,000 zone. Only a break below $2,300 interim support will change the immediate bullish outlook.
Ethereum had dropped from $4,850 highs through $2,140 lows earlier, carving a meaningful larger degree downswing. Since then, the crypto has been unfolding a corrective wave and has terminated two waves around $3,500 and close to $2,800 levels respectively. If the above structure holds well, we can expect a bullish turn soon to complete the correctivephase.
Ethereum could find support close to $2,780-2,800 levels, which is also the Fibonacci 0.618 retracement of the recent upswing between $2,300 and $3,500 levels (rectangle marked on the chart). If the waves unfold accordingly, high probability remains for a bullish reversal from current levels soon.
Trading plan:
Potential rally toward $3,800-4,000 against $2,100
Good luck!
