Ethereum is again testing the $1,700 support on Friday. The crypto dropped to the $1,728 mark before quickly pulling back to $1,750 at this point of writing. Bulls are still holding prices above the $1,700 mark, keeping the structure constructive for an extended rally towards $3,000 and up to the $3,500-3,600 zone.
Ethereum seems to be working on its recent upswing between $1,700 and $2,015. Prices have retraced beyond the Fibonacci 0.786 levels but the structure remains intact until $1,700 holds well. If the above scenario is correct, a sharp bullish reversal could be expected towards the $3,000 level in the near term. A push above $2,015 will accelerate the price towards the above-projected targets.
On the flip side, if bears are successful in breaking below the $1,700 mark, they might print a shallow low between $1,600 and $1,700 before finding support again. The structure would still remain constructive as a larger degree corrective wave is just about to unfold towards the zone of $3,500-3,600. Please note that $3,500 is close to the Fibonacci 0.618 retracement of the entire downswing between the $4,850 and $1,700 mark respectively.
Trading plan:Potential rally through $3,000 and $3,500 against $1,500
Good luck!