Ethereum like most cryptocurrencies has most probably made an important low on May 23rd. Price is bouncing higher and is now making higher highs and higher lows in the 4 hour chart. Our price target is at $3,200-$3,300 where we find important Fibonacci resistance.

Ethereum made a first pause at the 38% Fibonacci retracement after the start of its bounce. Price briefly pulled back and is now making higher highs. This leads me to expect more upside to come for Ethereum at least in the short-term. My target is the 61.8% Fibonacci retracement so the second upward leg is at least equal with the first. My most probable scenario for Ethereum is to see the formation of a major lower high created around the red rectangle area. I expect one more leg down that will bring price below the lows of May 23rd. For this bearish scenario to come true, price will need to break below $2,500. Until then, short-term trend is bullish.