FX.co ★ Trading plan for Ethereum on May 17, 2022

Technical outlook:

Ethereum rallied through the $2,160 mark just shy of initial resistance around $2,188 over the weekend. The crypto has pulled back a bit and is seen to be trading around the $2,080 mark at this point in writing. The bulls will be poised to hold prices above the $1,700 interim low to keep the medium-term structure intact.

Ethereum has dropped from the $4,850 high through the $1,700 low over the last week carving a meaningful downswing. Furthermore, ETH has taken out major support around $1,700 calling for a decent pullback rally from current levels. The counter-trend rally seems to be underway from $1,700. The potential remains through the $3,500-3,600 area.

Ethereum is expected to face strong resistance around the $3,690 mark since its Fibonacci 0.618 retracement is passing through. Bears will remain poised to come back in control thereafter and drag pries lower through $1,700. At least for the medium term, we can expect a corrective rally through the $3,500-3,600 levels.

Trading plan:

Potential rally through $3,500-3,600 against $1,500

Good luck!