Technical outlook:
Ethereum further rose through the $1,280 highs over the weekend before finding resistance and pulling over. The crypto is seen to be trading close to $1,230 at this point in writing and is expected to produce a corrective drop through the $1,000-30 zone in the next few trading sessions. Bears might remain in control in the near term before bulls begin holding the upper hand.
Ethereum has potentially carved a larger degree downswing between $4,850 and $880 in the past few weeks. Ideally, bulls should retrace the above drop by producing a counter-trend rally towards $3,200, which is the Fibonacci 0.618 retracement of the above drop. Immediate resistance is seen at around $1,920, which could be the short-term target.
Ethereum has carved a lower degree upswing now between $880 and $1,280 in the past few trading sessions. Prices are now expected to pull back a bit towards the $1,000-30 zone before reversing higher again. Only a drop below $880 from here will delay the proposed rally as traders might be preparing to add further longs at around the $1,000-30 zone.
Trading plan:
Potential rally through $1,920 and $3,200 against $800
Good luck!
