Technical outlook:
Ethereum dropped through the $1,423 lows last week before finding support. The crypto staged a rally through the $1,650-55 mark, which is the Fibonacci 0.382 retracement of the entire drop between $2,031 and $1,420-23 respectively. Only a break below $1,423 will open the door towards the $1,356 support and delay the much-awaited counter-trend rally.
Ethereum has carved a meaningful larger-degree downswing between $2,031 and $1,420 as seen on the 4H chart here. The above drop needs to be retraced up to $1,800, which is the Fibonacci 0.618 level before turning lower again. Ideally, bears would be successful in holding prices below $2,031 going forward.
Ethereum has further carved its first wave within the proposed counter-trend rally between $1,423 and $1,650 respectively. The crypto could find strong support close to $1,500-10 before resuming its rally towards $1,795 in the next few trading sessions. Also, note the Fibonacci convergence seen at around $1,795-1,800 area which should turn prices lower.
Trading plan:
Proposed counter-trend rally towards $1,800 against $1,400
Good luck!
