Technical outlook:
Ethereum pushed close to $1,200 on Tuesday before finding resistance as bears came back in control strong. The crypto remained shy of the projected intraday target of $1,240-50 and closed the intraday low, producing a shooting star candlestick pattern. It is seen to be trading close to $1,085 at this point in writing and is expected to drop to around $995 in the near term.
Ethereum has now carved a meaningful downswing between $4,850 and $880 as seen on the daily chart. Further, prices have resumed unfolding a corrective rally towards $1,920, $2,400 and up to $3,350 going forward. If the above holds well, bulls will remain in control and print a series of higher highs and higher lows against $880.
Ethereum has further carved a lower degree upswing between $880 and $1,195 in the past three trading sessions. Prices are expected to drop through the $995-1,000 zone, which is the Fibonacci 0.618 retracement of the above rally (not projected today). Traders might be preparing to initiate fresh long positions from around $1,000.
Trading plan:
Potential short-term drop through $995, then rally towards $1,920 and $2,400 at least against $880
Good luck!
