In our last analysis on Ethereum we took for granted that the next upward wave has already started and price was heading towards $3,200-$3,300 area. Price action that followed did not confirm our view that the pull back was over. Prices pulled back towards $2,170 and are now moving higher again.
The upward bounce from $1,748 to the 38% Fibonacci retracement was the first bounce wave. The second wave pull back reached the 61.8% retracement of the first wave and I'm very confident that we are now starting the third and most probably final upward wave towards the red rectangle area where I expect to see a major lower high. Price is expected to move towards the 50%-61.8% retracement area. This is our target. My most probable scenario is that we make a lower high in that area and then reverse in order to make another corrective pull back that will eventually push price below $1,748. It is still too early to talk about this scenario. We focus on the short-term bounce targeting the red rectangle area.