Technical outlook:
Ethereum prices dropped through $1,552 after reversing sharply from $1,761 on Tuesday. The crypto has found interim support at the Elliott Channel. If it holds well, another leg higher remains possible towards the $1,800-10 levels. The bears will remain inclined to hold prices below $2,031 to keep the structure intact.
Ethereum has carved a meaningful bearish boundary between $2,031 and $1,423 in the past two weeks, which is also retraced through the $1,780-90 zone lately. A bearish reversal would be confirmed on a break below the $1,423 low and prices would head further to break below $1,356. The alternative scenario is that a push from here will open the door to re-test $1,800 before turning lower.
Ethereum remained just shy of hitting the Fibonacci 0.618 retracement of the bearish boundary around $1,800-05. If a complex corrective structure is unfolding from here, prices could reach up to $1,900 and then turn lower again. Please note that the overall trend has already turned lower and we are looking to sell higher again.
Trading plan:
Potential rally through $1,800 against $1,400
Good luck!
