FX.co ★ Trading plan for Ethereum on October 13, 2022

Technical outlook:

Ethereum dropped through the $1,220 lows intraday on Thursday before finding some bids. The crypto is seen to be trading close to $1,250 at this point in writing and is preparing to produce a rally potentially towards $1,580-1,600 in the next few weeks. Near-term support is seen at about $1,200 before the rally could resume.

Ethereum has dropped between $2,031 and $1,220 in the past several weeks as seen on the 4H chart. The RSI is producing some bullish divergence (not shown here) which could be a potential reversal signal from the current levels or close to $1,200. Until prices stay below the $1,790-1,800 area, the bears are going to remain in control.

Ethereum is seen to be currently working upon the immediate bearish boundary between $1,790 and $1,220 as seen here. A counter-trend rally might reach up the Fibonacci 0.618 retracement, which is seen around $1,580 as projected on the chart here. We can also see the Fibonacci convergence at around $1,580, which is a strong resistance zone.

Trading idea:

Potential rally towards $1,580 against $1,000

Good luck!