Ethereum is trading around $3,300 after making a low close to $2,920. Price has so far retraced the 61.8% of the entire rise from June lows and our pull back targets have all been achieved. There are a lot of chances of a bigger bounce towards $3,620, but for now we still consider this as a counter trend bounce.
Red line- resistance trend line
Trend remains bearish in the short-term as price continues making lower lows and lower highs. The 61.8% Fibonacci retracement is key support and failure to stay above it would be a bearish sign and we should expect a deeper pull back towards the 78.6% level. The RSI is bouncing higher from oversold levels but there is no bullish divergence evident. Our primary scenario is that we see a counter trend bounce and price should continue lower.