Technical outlook:
Ethereum now seems to have carved a meaningful bottom around the $1,700 mark on Thursday and is expected to hold above this level in the next trading sessions. Please note that bears have managed to take out its July 2021 lows, indicating a much deeper correction ahead. But before the next leg lower, bulls appear poised to produce a meaningful pullback.
Ethereum has moved through $2,140 before easing off a bit as it is seen to be trading close to the $2,100 mark at this point of writing. The crypto is producing a significant Engulfing Bullish candlestick pattern on the daily chart and hence potential remains for an extended rally going forward.
Ethereum bulls are now targeting the $2,900 and $3,500-3,600 zone in the next several trading sessions. Also note that the Fibonacci 0.618 retracement of the entire drop between $4,850 and $1,700 is seen through $3,690 mark as projected on the chart here. Bears might be back in control thereafter.
Trading plan:
Potential rally towards $3,600 against $1,500
Good luck!
