Technical outlook:
Ethereum dropped through the $1,489 lows in the early hours on Wednesday before finding support and bouncing back above the $1,500 handle. The crypto is seen to be trading close to $1,515 at this point in writing and is expected to resume higher towards $1,800 in the next several trading weeks. The bottom line is the $1,423 interim support, which should hold to keep the bullish structure intact.
Ethereum has carved a meaningful bearish boundary between $2,031 and $1,423 as seen on the 4H chart here. The same is being worked upon as a counter-trend rally is into its final wave against $1,423. The projected targets are towards $1,800 which is the Fibonacci 0.618 retracement of the above drop. The bears might be preparing to come back in control thereafter.
Ethereum is currently working on its recent upswing between $1,423 and $1,675. The bears have dragged prices lower towards $1,489 in the early hours and found support. Also, note that $1,500-10 is close to the Fibonacci 0.618 retracement and hence, strong support is expected. If the above scenario holds well, prices would bounce back strong from here and push the price through $1,800 going forward.
Trading plan:
Potential rally through $1,800 against $1,400
Good luck!
