FX.co ★ Trading plan for Ethereum for June 08, 2021

Technical outlook:

Ethereum rallied through $2,850 levels yesterday before finding resistance and reversed sharply lower. The crypto is still lagging behind its counterparts Bitcoin, Dogecoin and more, as it is still trading away from its recent swing lows around $1,728 levels. If the triangle consolidation is complete, potential remains for a drop towards $1,700 and lower.

Ethereum is seen to be trading around $2,500 levels at this point in writing and is expected to continue drifting towards $1,700 levels going forward. Immediate resistance is strong around $2,800/2,900 while support comes in at $1,700 levels respectively. A break below $2,250 would accelerate lower towards $1,700 at least.

Also note that trend line support for the past one year is passing through $1,500/1,600 levels and a bounce there would bring back bulls in control. Potential remains for a drop towards $1,500 mark before Ethereum bulls can manage to resume its rally.

Trading plan:

Remain short, stop @ 2,900, target @ 1,700 at least

Good luck!