Ethereum is finding its ground after slipping through the $2,200 mark on Tuesday. The crypto rose through $2,450 before pulling back and has been drifting sideways since then. We cannot rule out yet another low towards the $1800-1900 zone before major support comes in but the downside risk remains limited from here on.
Ethereum has carved a meaningful downswing between $4,850 and $2,200, which could be retraced anytime soon towards the $3,800-4,000 zone. Please note that a break below $2,200 would open the door to test the $1,700 support as bears remain in control. The next few trading session remain the key for the next larger move.
Ethereum is poised to produce a counter-trend rally with from current levels or after another low through the $1,800-1,900 zone going forward. Potential also remains for a fresh high above $4,850 of prices manage to push through the $4,100 mark going forward. Traders might be willing to initiate fresh long positions sooner than later.
Trading plan:Potential rally through $3,800-4,000 against $1,600
Good luck!