Technical outlook:
Ethereum prices dropped marginally below $2,800 mark before reversing sharply on Monday. The projected range for potential bottom formation was between $2,780 and $2,800 as the crypto came extremely close before finding strong support. Bulls are now looking poised to remain in control and hold prices above the $2,800 level going forward.
Ethereum remained just shy of testing the $2,780 level, which is the Fibonacci 0.618 retracement of the rally between $2,300 and $3,500 levels respectively (marked as a pink rectangle on the chart). A high probability remains for a continued push toward $3,800-4,000 levels going forward before the bears are back into action.
Ethereum is into its third wave within its counter-trend rally, which had begun from $2,140 lows earlier. ETH is expected to terminate around $3,800-4,000 levels, which is also close to the Fibonacci 0.618 retracement of an earlier drop between $4,850 and $2,140 levels respectively. Traders might prepare for a rally towards $3,800 levels soon.
Trading plan:
Potential rally through $3,800-4,000 level against $2,140.
Good luck!
