Ether has rallied through a $3,200 high on Wednesday, potentially testing its recent swing high around the $3,300 mark. The candlestick pattern on daily chart is an indecisive (Doji), indicating potential bearish reversal in the near term. Bears will remain in control until prices continue to stay below the $3,300 handle.
Ethereum has carved a lower degree upswing between $2,100 and $3,300 in the recent trading sessions. The crypto is retracing the above upswing by producing a Gartley structure towards the $2,600 mark. Once complete, bulls will be back in control and push prices higher through $3,800 and $4,000 levels as projected on the daily chart presented here.
Note that Fibonacci 0.618 retracement of the above upswing is also seen close to the $2,600 mark. The probability remains high for a bullish bounce if prices drop below $2,600. Overall, ether is preparing to carve a Righ Shoulder of a Head and Shoulder reversal pattern to $4,000, before giving in to bears.
Trading plan:Potential drop toward $2,600 first, then rally to the $4,000 mark.
Good luck!