This chart is super simple. It simply shows the entire price history of Ethereum on a yearly chart with basic Fibonacci retracement levels applied. It shows that Ethereum has corrected significantly this year back down to a major retracement level.
So far, Ethereum has corrected down about 70% from its all-time high. Price has retraced all the way back to January 2018. Another technical indicator is also flashing a buy signal: the monthly EMA exp ribbon has reached its base just as the stochastic RSI oscillator has reached its base. This is a low-risk-to-reward setup.
While I do believe more downside is quite possible, it would be wise for those of us who are super long on cryptocurrency, to accumulate some Ethereum at this retracement level. This magnitude of retracement is quite rare. The sentiment with cryptocurrency right now is actually about as low as it ever gets. It has been hovering near 10 for about two months, which in the past has occurred at significant bottoms.
@JoelbillionFX, Interesting. That would be quite extreme, but it's true that 0.618 is one of the more reliable retracement levels. I should point out though that this chart was meant to show that ETH retraced back to the 2018 high, but for a valid 0.618 retracement level, one should draw the Fib level from all-time high to its all-time low, which this chart doesn't do.