Technical outlook:
Ethereum dropped through fresh lows around the $2,766 mark on Tuesday late during the New York session. The drop is in line with the zone around $2,780 projected earlier. The bulls are now looking inclined to be back in control and push prices through the $3,800-4,000 range. Ideally, prices should stay above the $2,300 mark to keep the above structure intact.
Ethereum has found potential support around the $2,766 mark, which is close to the Fibonacci 0.618 retracement of the rally between the $2,140 and $3,500 levels respectively. A high probability remains for a bullish turn from here and pushes through the channel resistance around the $3,800-4,000 zone.
Further, $3,800 is close to the Fibonacci 0.618 retracement of the earlier drop between $3,850 and $2,140 levels. The bears will remain inclined to be back in control thereafter and drag prices below the $2,100 mark going forward. Only a consistent push above the $4,200 mark will ensure that the bulls are poised to print a new all-time high.
Trading plan:
Potential rally through $3,800-4,000 zone against $3,300
Good luck!
