Ethereum rallied through the $1,200 mark on Wednesday before finding resistance and puling over. The crypto is seen to be trading lower close to $1,180 at this point in writing and is expected to attempt to test the $1,250-80 zone in the near term. Intraday corrective drops remain possible but prices should be well capped ahead of $998 and broadly above $880.
Ethereum has carved a larger-degree downswing between $4,850 and $880 levels as seen on the daily chart. The drop began in November 2021 and unfolded as a potential zigzag (5-3-5) terminating at around $880. Ideally, bulls should be back in control soon and produce a rally towards $2,400 at least and up to $3,400 in the medium term.
Ethereum has been working on a three-wave rally from the $880 lows. Bulls have managed to carve a lower-degree upswing between $880 and $1,280 levels, which was retraced to $997 last week. If the above structure holds well, bulls will be poised to push towards the $1,525 and $1,925 targets in the short term. Also, note that initial price resistance is also seen at about $1,920.
Going forward:Ethereum is expected to remain in control of bulls in the near to medium term. The bottom line for the above scenario to unfold is that prices should stay above the $880 interim support. Looking into the bigger picture, the crypto might drop below $880 after completing its corrective rally towards $2,400 and $3,400.
Trading plan:Potential rally towards $2,400 against $880
Good luck!