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

Technical outlook:

Ethereum rose through the $1,620 intraday highs during the Asian session on Wednesday. The crypto dropped towards $1,480-90 as expected before turning higher again. Please note that prices could drop to $1,550-60 intraday before finding the next support and resuming higher towards $1,720 at least.

Ethereum has already carved a larger-degree downswing between $2,031 and $1,423 earlier. The bulls are probably unfolding a similar-degree corrective wave towards $1,722 and up to $1,790 before the bears are back in control. Also, note that $1,790 is the Fibonacci 0.618 retracement of the entire drop as seen on the chart here.

Ethereum seems to be unfolding the counter-trend rally after finding support at around $1,480 already. A minimum push is expected towards $1,720 before the bears are back in control. Any intraday dip towards $1,550 should be considered an opportunity to initiate long positions again. The price is looking higher in the near term.

Trading plan:

Potential rally towards $1,720 and $1,790 against $1,400

Good luck!