Technical outlook:
Ethereum dropped through the $1,270 lows over the weekend before finding support again. The crypto might have bounced from the Fibonacci 0.618 retracement of its recent upswing between $1,220 and $1,328 respectively. The crypto is seen to be trading close to $1,295 at this point in writing and is expected to push higher towards $1,800 at least.
Ethereum earlier found support around $1,220 which is the Fibonacci 0.618 retracement of the entire rally between $800 and $2,031. Furthermore, $1,220 is also the past resistance-turned-support zone as projected on the chart here. Also, note that an Engulfing Bullish candlestick was produced on the daily chart last week.
All the above facts are hinting at a potential rally against $1,200. Initial resistance is seen through the $1,790-1,800 area and the bulls might be targeting the same levels. Only a break below $1,220 will be considered to be bearish as prices might drop towards $1,000 which is initial support as seen on the chart here.
Trading plan:
Potential rally towards $1,790-1,800 against $1,000
Good luck!
