1999 Corolla CE - Unknown Loose Ground Wire

#1
I recently inherited a 1999 Corolla CE that had served its previous owner reliably. Shortly after my receipt, however, the weather turned cold and the car has started emitting the apparently-infamous click at ignition.

In the course of my efforts to diagnose and repair the problem, I removed the battery and discovered that one end of the negative wire was hanging loose in the engine compartment.

In the attached image, the socket labelled "1" connects to a small-gauge wire attached to the driver's side front wheel well. The end of the cable, marked "2," appeared to be hanging loosely behind and underneath the air filter.

In an ill-informed experiment, I secured the "2" end of the cable to the car's frame and attempted to turn on the headlights. The lights briefly activated but then remained dark. Upon removal of the "2" connector from contact with the frame, the headlights worked.

Is the "2" connector supposed to be loose? If not, to where should I secure the "2" end of the ground cable? I have Googled for photos, diagrams, and descriptions but have thus far not found any helpful advice. My Haynes manual seems to offer little help.

Yes, I am new at this. I would immeasurably appreciate any time you can spare. Thank you.
 

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#2
That is definitely supposed to be mounted on the frame (the mounting point should not be painted). I'm not exactly sure where though. Can you see if a junkyard has that year and go and peek at it?
 
#3
That is definitely supposed to be mounted on the frame (the mounting point should not be painted). I'm not exactly sure where though. Can you see if a junkyard has that year and go and peek at it?
Yeah I was thinking that I'll have to do that. If I do, I'll post back here if I figure out the proper placement.
 
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