Technical outlook:
Ethereum bulls have managed to produce a religious uptrend since March 2020 after printing lows around $88.20. The crypto has registered all-time highs at $874 mark on February 13, 2021. It has failed to produce any fresh highs today as Bitcoin and this might be seen as a bearish divergence, going forward.
The crypto is seen to be trading around $1,809 levels at this point in writing and is expected to turn lower to produce a meaningful correction, before resuming rally. As seen on the daily chart, Ethereum is very close to hitting fibonacci 0.618 extension at $1,892, of the entire rally between $228 and $3,345 levels respectively. Immediate resistance is seen towards $1,900 zone, while support comes in around $1,500, followed by $1,250 levels respectively.
The overall uptrend still remains intact, but the rally seems to be exhausting with major fibonacci targets seen close to $1,900 levels. A meaningful corrective drop can be expected towards $1,240, which is fibonacci 0.382 retracement of the rally between $230 and $1,874 levels respectively. Only a break below the one year trend line passing through $850 now, would confirm the trend might be changing.
Trading plan:
Aggressive traders might prepare to sell with stop @ 1,910, target @ 1,240
Good luck!
