FX.co ★ Trading plan for Ethereum for February 03, 2022

Technical outlook:

Ethereum is most likely producing a counter trend rally towards $3,900 mark before bears could be back in control. The crypto had dropped between $4,800 and $2,100 earlier, carving a meaningful downswing breaking below its trend line support. A pullback or retracement is now expected before it turns lower and drag below $1,700 mark.

Ethereum has also taken out its immediate price support around $2,680 levels as marked on the daily chart here. Hence probability for a meaningful pullback remains higher from current levels. Only a break below $2,100 would expose the next support seen at $1,700 mark. Ideally, bulls are expected to hold prices above $2,100 in the near term.

Most likely Ethereum is unfolding a bearih Head and Shoulder pattern as its counter part Bitcoin. The Head is in place at $4,800 while Neckline has been broken around $2,680 levels. The Left Shoulder is seen through $3,800-900 zone and Right Shoulder can be projected around the same going forward. If the above is correct, prices should reverse sharply after the counter trend os complete.

Trading plan:

Potential rally toward $3,800 against $1,700

Good luck!