- January 5, 2021
- Posted by: Tradingshot Articles
- Category: Cryptocurrency
First of all congratulations to ETHUSD traders, both targets ($690 and $990) based on my previous post got hit (see idea below), earlier than I expected:
A lot of talk is being made lately regarding Ethereum’s recent rise. Where is this price jump attributed to? Well it was the next step on its Fibonacci Channel (on the 1D time-frame) and this pattern shows where it may be heading next.
As you see, the pattern follows a very specific sequence since May 2020. When a new Fib line High is made, the price pulls back 1.0 Fib below. The Fib zones are quite clearly displayed on the chart. When ETH hit 1.0 Fib it pulled back to 0.0. When it hit 1.5, it pulled back to 0.5. This was repeated several times from May until December 2020, long enough to be considered consistent.
This formation suggests that a pull back to the 1.5 Fib level may be in order (currently 1.5 is around $800 – 820). Since, based on the LMACD, the current price action resembles that of June-July 2020, we can’t rule out a 1.0 Fib extreme that would break below the MA50, but would still be a great long-term buy opportunity.
The obvious target is the 3.5 Fibonacci extension by March, which gives an average value of $1900.
So are you waiting for this pull back to jump in again or you’re staying long expecting another pump? Feel free to share your work and let me know in the comments section!
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