Technical outlook:
Ethereum prices rose through the $2,160-65 zone over the weekend, after dropping to $1,700 on May 12, 2022. The crypto has carved a meaningful intermediate low and is expected to develop a counter-trend rally towards the $3,500-3,600 zone in the next several trading sessions. Bulls are now inclined to remain in control and hold prices above the $1,700 mark.
Ethereum has carved a meaningful downswing boundary between $4,850 and $1,700. Furthermore, it has taken out meaningful support around the $1,700 mark as seen on the chart here. Ideally, the crypto should produce a meaningful counter-trend rally reaching $,3500 in the next few trading sessions.
Ethereum is looking to rally through the Fibonacci 0.618 retracement of the above drop between $4,850 and $1,700, which is close to $3,600 as seen on the chart. Also, note that price resistance is seen through the $3,555 level as marked here. The high probability remains for a turn lower thereafter.
Trading plan:
Potential rally through $3,500-3,600 against $1,500
Good luck!
