This will show the importance of the Fibonacci retracements no matter how wild the swings are, as we believe they are the underlying structure of all markets.
We will cover the last five days in what could be called the most volatile in Ethereums history.
Starting with the 1349.90 high the first setback held 38.2% at 1247.00 (1). The rally from there failed to make a new high, the 38.2% rule, says that they need to make a new high to keep the trend intact and a failure to do so sets up a possible turn in the trend. A lot of these failures happen at 61.8%, or 78.6% and in this case it was 78.6% at 1322.00 (2). The break from there told us to watch the 38.2% level on rallies to see if the trend has turned. The rally up to 1143.00 (3) hit 38.2% and a new low followed. The break took it down to 38.2% back to the 9/7/20 low (4), they traded below it , but never closed below. The first rally from here took it to 23.6% at 1016.00 (5) the break from there failed to make a new low, telling us of a possible trend change. We already knew that holding 38.2% back to the 9/7/20 low should send us higher, and this just added to that view.
The next rally took it up through 38.2% (A) of the break, which told us the low should be in and to look for the higher prices, however the first setback before the trend starts can be 61.8%, or 78.6% back.
In this case it was 61.8% (B), on the rally from there the first setback held 23.6% (C) keeping the trend very positive and the next setback also held 23.6% (D).
Going forward., 23.6% is 1172.00, holding this level would be extremely positive and it would have to take out 38.2% at 1124.00 to say the trend is turning. Above these levels look for new All-time highs.
This is just a microscopic view of what plays out in the micro and macro levels.
We just put out a video on Bitcoin covering the last ten days with the same analysis.