Technical outlook:
Ethereum has dropped again through the $1,740-50 zone after reversing from the high of $1,920 on Monday. The crypto might retest the low of $1,700 before resuming its rise. Bulls are inclined to hold prices above $1,600-50 to keep the near-term structure favorable for a rally towards the $3,500-3,600 zone (potential expended flat).
Ethereum has been working on a countertrend rally since registering lows at the $1,700 mark earlier. Price action has remained range-bound since then and could print marginally below the $1,700 mark before finding support again. Upside potential remains towards $3,000, which is initial resistance followed by the $3,500-3,600 zone.
Ethereum has carved a larger degree downswing between $4,850 and $1,700. A high probability remains for a corrective phase of a similar degree unfolding from here. If the above structure unfolds accordingly, potential remains for a rally up to the $3,500 mark, which is also the Fibonacci 0.618 retracement of the entire drop.
Trading plan:
Potential rally through $3,500 against $1,500
Good luck!
