Ethereum (ETH)’s Fate Hinges On 0.786 Fibonacci Support


Ethereum (ETH) has been in the eye of the hurricane for the last few weeks. The price has taken wild swings to both sides. The 4H chart above for ETH/USD shows that the price has to take a definitive stand now. Ethereum (ETH) has currently found support at the 0.786 Fibonacci retracement level which is a very critical level for the future price action of Ethereum (ETH). If Ethereum (ETH) breaks below this level, it will be a sign of extreme weakness and the price can then be expected to break the long term descending channel and fall even lower. This might coincide with a similar break of market structure in Bitcoin (BTC).

However, if that were to happen, it would be completely out of the ordinary and Ethereum (ETH) will then have to enter another bear market. It cannot be simple drop and bounce back especially if there is a close below market structure on the daily or weekly time frame. The market must then enter another bearish cycle. Consider all that is going on in the crypto space as well as the changing macro economic conditions on a global scale, it is highly unlikely for that to happen as much as many in the crypto currency space would want that to happen.

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