Technical outlook:
Ethereum dropped through fresh swing lows around the $1,075 mark on Tuesday before finding bids again. The crypto has managed to rally through $1,254 intraday and is now seen to be trading close to the $1,215 level. Bulls are carving a potential Doji/Hammer/Pinbar candlestick pattern on the daily chart, which could be seen as a potential trend reversal going forward.
Ethereum is now facing resistance around $1,920, followed by $3,500, while interim support now comes around the $1,075 level respectively. The crypto now needs to break above the $1,920 mark to confirm that a meaningful bottom is in place and that bulls are back in control. Bulls will be poised to hold prices above the $1,075 mark going forward.
Ethereum has carded a larger degree downswing between the $4,850 and $1,075 levels as seen on the daily chart presented here. Ideally, bulls need to unfold a meaningful corrective rally before bears are back in control. Potential upside targets are pointing towards $2,550 and up to $3,550, which are the Fibonacci 0.382 and 0.618 retracement levels of the above drop.
Trading plan:
Potential rally through $2,500 and $3,500 against $900
Good luck!
