Ethereum dropped through $2,300 lows on Thursday before pulling back to $2,330 at the time of writing. Bears have managed to drag prices further below the projected $2,600 levels. Nonetheless, the structure would still remain constructive for bulls until prices stay above $2,100 mark. A bullish reversal here would push through $3,800-4,000 mark going forward.
Ethereum had already carved a meaningful upswing between $2,100 and $3,300 levels. The recent drop has managed to reach beyond fibonacci 0.786 retracement of the above upswing. High probability remains for bulls to be back in control around current levels and continue higher to $4,000 levels going forward.
On the flip side, a break below the $2,199 mark will drag further towards $1,700 price support. If the alternative scenario turns out to be correct, Ethereum will confirm a major trend reversal ahead. For now, focus remains around $2,100 mark as bulls prepare to come back in control pushing higher towards $3,800 at least.
Trading plan:Potential rally through $3,800 against $2,100.
Good luck!