FX.co ★ Trading plan for Ethereum for February 18, 2022

Technical outlook:

Ethereum had dropped close to $2800 mark in-line with our expectations and projection. Probability still remains for a drag lower towards $2600 level before the rally could resume. Bulls are expected to remain in control over the medium term until prices stay above $2100 swing lows. It is advised to book profits on shorts initiated earlier and prepare to buy around $2600.

Ethereum has carved an upswing between $2100 and $3300 levels and it is working on retracing the same. Prices have tested the Fibonacci 0.382 levels around $2800-2900 level as of now. Please note that the crypto can drop through $2600 mark which is fibonacci 0.618 retracement, before finding support and resuning higher.

Ethereum prices should stay above the $2100 mark to keep the bullish structure intact medium term Also note that bulls are looking inclined to carve a potential Right Shoulder around $3800-4000 level before resuming lower again. Having said that, if prices break above the $4350 mark, it could push through fresh highs.

Trading plan:

Potential drop to $2600 then rally towards $3800-4000 mark.

Good luck!