FX.co ★ Trading plan for Ethereum on May 31, 2022

Technical outlook:

Ethereum rose to the $2,015 high intraday on Tuesday before pulling back. The crypto continued its bullish momentum after bouncing back sharply from $1,700 levels last week. Bulls have managed to push the price by over 8% in the past three trading sessions as they remain poised to continue towards $3,000 and up to $3,500.

Ethereum is unfolding its counter-trend rally since the $1,700 lows on May 12. The standard flat corrective structure is now into its third leg after terminating the first and second legs around $2,165 and $1,702 earlier. If the above structure holds well, bulls will remain inclined to push through the $3,000 initial resistance in the next few trading sessions.

Ethereum has already carved a meaningful larger degree downswing between $4,850 and $1,700, which is being retraced at a similar degree. The upside target potential remains up to the $3,500-3,600 area, which is also the Fibonacci 0.618 retracement of the above downswing. Traders might prepare to add further long positions against $1,500.

Trading plan:

Potential rally through $3,000 and $3,500 against $1,500

Good luck!