Technical outlook:
Ethereum has dropped through the $1,175 lows on Monday after breaking below the $1,700 consolidation support over the weekend. The crypto was within a barrier triangle consolidation earlier and the drop to $1,175 could be the final thrust wave before turning higher again. Bulls might be preparing to come back in control soon.
Ethereum has taken out three major support levels around $1,700, $1,547, and $1,300 in the past three trading sessions. Ideally, a meaningful corrective wave should be underway soon before the trend of a larger scale could resume. The crypto is now facing resistance around $1,920 followed by $3,500, while the interim support is seen around the $1,175 levels respectively.
Ethereum seems to have carved a meaningful larger degree downswing between the $4,850 and $1,175 levels. The entire drop should be ideally retraced through $2,600 and $3,555 levels going forward. Also, the Fibonacci 0.618 retracement of the above drop is seen passing through the $3,550 mark, which could be strong resistance.
Trading plan:
Preparing for a bullish reversal towards $3,500
Good luck!
