Technical outlook:
Ethereum dropped through $1,950 on Tuesday after reversing from the $2,085 high registered on Monday. The potential still remains towards $1,875 before bulls are back in control. Ideally, prices should stay above $1,700 to keep the near-term bullish structure intact. Projected upside targets are $2,500, $3,000 and up to $3,500 going forward.
Ethereum has carved a meaningful downswing between $4,850 and $1,700 as seen on the daily chart. After breaking one-year support at $1,700, it was quite logical for bulls to come back in control to produce a counter-trend rally. The second wave of the corrective phase might still terminate at around $1,875 before resuming the third wave higher.
Ethereum's corrective phase might reach up to the $3,500-3,600 zone, which is also close to the Fibonacci 0.618 retracement of the entire drop between $4,850 and $1,700 respectively. It remains to be seen if the third wave of the correction resumes from here or after dropping through $1,875 going forward.
Trading plan:
Potential rally through $3,500 against $1,700.
Good luck!
