Technical outlook:
Ethereum dropped through the $2,750 low on Tuesday before finding bids again. The crypto has managed to reverse sharply since then and is seen to be trading close to $2,880 at this point in writing. Bulls are now looking poised to hold prices above the $2,300 mark and continue higher through the $3,800-4000 zone going forward.
Ethereum is ideally poised to produce a corrective wave towards $3,800 at least. Also, note that $3,800 is close to the Fibonacci 0.618 retracement of its earlier drop between $4,850 and $2,140 respectively. Bears will be poised to come back in control thereafter and look to drag prices lower through the $2,140 mark.
Alternatively, if Ethereum is able to consistently push prices above $4,100, the potential remains for an all-time high above $4,850 going forward. Either way, the crypto is looking to produce a rally from here towards the $3,800-4,000 zone or towards fresh highs. Traders might be preparing to initiate fresh long positions around current levels ($2,880).
Trading plan:
Potential rally through $3,800-4,000 against $2,140
Good luck!
