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Our goal is to not only give you actionable information, but to help you understand why we think this is happening based on pure price analysis with Fibonacci retracements and Gann squares.
You can get all the rules and guidelines to the Fibonacci retracements on our website.
Ethereum is fast approaching 61.8% back to the ATH and with that happening we want to take you back to what set up this current rally when using the ONE44 Fibonacci rules and guidelines.
The break from the ATH took it down to 61.8% (1740.00) to the 2018 low on 5/24/21. The 61.8% rule says, any time a market holds 61.8% look for a 61.8% move back the other way. This would be 3360.00 and it is the long term target.
The rally from there went to 38.2% back to the ATH, this was 2790.00, it traded above it on 5/26/21 and 6/3/21, but never had two closes in a row above it. We know using the 38.2% rule, that any market that is going to continue its current trend must hold 38.2% and a new low should follow. It did make a new low on 6/22/21, however it was only a slightly lower low, the secondary rule when using the 38.2% guidelines is, that any market that holds 38.2% should make a new low, any failure to make the new low, or only a slightly lower low should send it to 61.8% of that same move, again this gives us a target of 3360.00. There are plenty of examples of these types of moves explained on our website under Fibonacci guidelines.
The rally from 2740.00 (61.8%) took the market to 23.6% (2380.00) of the ATH. The 23.6% rule is, any market that only goes back 23.6% is extremely negative and a new low should follow and like the 38.2% rule, not making a new low, or slightly lower low should send it, in this case to 38.2%. The break from 2380.00 (61.8%) went down to 1721.00 on 7/20/21, but failed to make the new low and the target became 2740.00 (38.2%).
You can see how we followed this current rally on its way up to 61.8% (3360.00) in our short term updates on the website.
Currently we are watching for 3360.00 as long as it stays above 38.2% of the rally at 2640.00. Only getting back to 23.6% at 2910.00 keeps the trend extremely positive. With a solid close above 3360.00 the next target is 3800.00, this is 78.6% to the ATH. Just remember that any break from 61.8% has the possibility to send it to 61.8% the other way and that for the trend to remain positive it must hold 38.2%.
You can now get our daily updates of Fibonacci and Gann Law of Vibration charts on our website for FREE, along with the DSP (dynamic swing point) and its targets.