Technical outlook:
Ethereum slipped towards $1,075 during the New York session on Tuesday before pulling back. The crypto has rebounded through $1,140 at this point in writing and is targeting $1,525 and $1,925 in the near term. Intraday corrective drops remain possible but they should be well caped above the $997 potential support.
Ethereum has been sliding over the past few months carving a meaningful downswing between $4,850 and $880 as seen on the daily chart here. The above drop seems to have unfolded as a corrective zigzag (5-3-5) pattern and completed at $880, before bouncing back. Importantly, a much larger decline might be unfolding, which could drag prices below $880.
Ethereum bulls are now inclined to develop another three-wave move in the opposite direction targeting $1,925 and $2,400 at least. The crypto has carved a lower-degree upswing between $880 and $1,280 in the past two weeks. Prices have also retraced from the upper border at $997, which is just below the Fibonacci 0.618 retracement as projected here.
Going further:
Ethereum prices might drop towards $1,050 in the near term but should hold above $997 going forward. A push above intermediate resistance seen at around $1,280 will confirm that bulls are back in control and prices would accelerate further towards $1,925. The bottom line for the above structure to remain intact is that prices must stay above $880.
Trading plan:
Potential rally towards $1,925 against $880
Good luck!
