FX.co ★ Trading plan for Ethereum for March 08, 2022

Technical outlook:

Ethereum looks prepared for the next leg higher towards at least $3,500 and up to $4,000 mark. The recent lower degree upswing is between $2,300 and $3,000 levels and the Fibonacci extensions are pointing through $4,000 mark as projected in red. Bulls need to hold prices above the $2,100 interim support to keep the bullish structure intact.

Ethereum had dropped between $4,850 and $2,100 levels carving a meaningful downswing. The rally since $2,100 seems to be retracing the above downswing and could be a counter trend before bears are back in control. Furthermore, the corrective rally has completed two waves already terminating around $3,330 and $2,300 levels respectively.

If the above is correct, Ethereum would resume its final wave higher towards $4,000 mark anytime soon. Also note that the Fibonacci 0.618 retracement of the entire downswing is seen towards $3,850 mark. The cryto could find a formidable resistance if prices managed to reach there. Bears might be preparing to come ack in control thereafter.

Trading plan:

Potential rally towards $4,000 against $21,00.

Good luck!