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Ethereum also plunged well below their long term swing point of 2741.00 and closed below it, this was 38.2% back to the 2018 low. Today's high after the plunge hit 2900.00 this is 38.2% back to the ATH and the level they need to close above tomorrow to keep the trend positive. The break from this area can send it back to retest today's low and possibly 1725.00, this 61.8% to the 2018 low.
Friday's high was 2939.00. As mentioned above a failure to get a close back above there could send it to retest the lows and even 61.8% back at 1725.00. Well, that $1000.00 break took a weekend to happen.
So now what?
Using the ONE44 Fibonacci rules and guidelines we know that when a market hits 61.8%, we can look for a move of 61.8% in the other direction as the longer term target and as always we will watch all the retracements to see just how strong, or weak the market is in the shorter term. Having said that, the long term target is 3384.00, with short term levels to look for resistance at 2350.00, this is 23.6% back to the ATH and most importantly 38.2% at 2741.00, any rally that fails to get above this keeps the long term trend negative. Below 1725.00 look for 1006.00, this is 78.6% back to the 2018 low.
Since they went so far below 42250 and closed below it we will now watch 38.2% back to the ATH to see if this rally is truly over for the time being. The level is 43600 and they need a close above it tomorrow to keep the trend positive. Failing to get above this level should send them to retest today's low and even 61.8% back to the 2018 low at 28300.
The rally after the huge break could not get back above the 42500 long term swing point, or 38.2% back to the ATH at 43600. They did go back to test the lows, but have not hit 61.8% like Ethereum did. You still have to watch 61.8% at 28300 for support. Below it, look for 78.6% at 18400. The trend will remain negative until it can get back above 38.2% at 43600.
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