I use a method of analysis using the Fibonacci re-tracement where I mark out the lowest low to the next highest high (for an up trend), which then becomes the FIB range to work within (A - B) . In order for this FIB range (A - B) to be valid, we need to have the highs of two candles lower on either side of the highest high. Depending on where the market falls to within this (A - B) range determines the target on the next rally. More often than not the target is hit (D) to the "pip" at which stage a new FIB range is established. On a rally(up or down), it has been typically observed for 7 - 11 candles, and as we get to within this range of 7 - 11 candles, we need to be cautious of a short term reversal or pull back.
As with BTCUSDT the past several weeks ETH has enjoyed a rally to make an all time high of 396 which is the -0.27 of the FIB Level - the target D for the previous FIB level was 341. After several weeks of rallying, last week saw a new low set of 258 and a break of the inner trend line which is the first step of creating a crown. Currently it is at the right tip of the crown formation, so we can expect a fall down to the d target of the sub-FIB to 220 which is also a support level at the 0.5% of the capital ABCD FIB pattern.
I expect this reversal will happen over the next few days and after hitting this target it should pull back to 315 mark which I believe will happen before the end of this week.
As normal let me know what you think and follow me to keep up to date with this analysis.
As with BTCUSDT the past several weeks ETH has enjoyed a rally to make an all time high of 396 which is the -0.27 of the FIB Level - the target D for the previous FIB level was 341. After several weeks of rallying, last week saw a new low set of 258 and a break of the inner trend line which is the first step of creating a crown. Currently it is at the right tip of the crown formation, so we can expect a fall down to the d target of the sub-FIB to 220 which is also a support level at the 0.5% of the capital ABCD FIB pattern.
I expect this reversal will happen over the next few days and after hitting this target it should pull back to 315 mark which I believe will happen before the end of this week.
As normal let me know what you think and follow me to keep up to date with this analysis.
