Ethereum made a triple bottom around $1,700 and is now trading at $2,287. Price has made a major low at the $1,700 area and has now changed short-term trend to bullish. Price has potential to reach $2,710.
Ethereum has most probably ended the downward trend from its all time highs at the $1,700 level. As long as price is above $1,700 we could see another bull run to new all time highs. First obstacle for bulls is the 38% Fibonacci retracement at $2,710. This is the minimum bounce target. If a new upward move has started the 38% retracement must be broken. Bulls should start a sequence of higher highs and higher lows. Breaking above the Fibonacci retracement levels will each time increase chances of a new higher high. The most important Fibonacci levels are the 38% and 61.8% retracements. We usually see price rejection and reversals at these levels. So it is important for bulls to break these two levels.
The material has been provided by InstaForex Company - www.instaforex.com