Technical outlook:
Ethereum dropped through the $1,450 lows intraday on Friday after reversing sharply from the $1,640-50 highs earlier. Either a meaningful top is in place just below the $1,800 handle or prices will attempt one more test towards the $1800-10 zone before turning lower again. The probability remains for a rally towards at least $1,650 from here in the near term.
Ethereum might be still working on its larger-degree bearish drop between $2,031 and $1,423. If a top is formed at $1,790-95, prices will stay lower and continue drifting towards $800 and further. The larger-degree structure continues to remain bearish against the $2,031 resistance and rallies should be seen as opportunities to sell.
Ethereum has carved a recent downswing between $1,790-95 and $1,450 as seen on the 4H chart here. Either, prices would attempt yet another test towards $1,800 or a push through $1,650 at least. We can expect a near-term rally from here until the $1,423 interim support remains intact.
Trading plan:
Potential rally towards $1,650 and $1,800 against $1,423
Good luck!
