Ethereum has experienced a significant 56% drop over the last 84 days. Has ETH found its bottom, or is more downside ahead? Let's break it down.
🔹 Fibonacci Retracement from October Low (2023) to December High (2024)
Starting with the Fibonacci retracement from the low of $1520.85 on 12th October 2023 to the high of $4109 on 16th December 2024, ETH recently hit the 0.886 Fib retracement at $1815.9 and saw a bounce. This area aligns with the Point of Control (POC) from previous price action, a potential signal that this could be a major support zone.
However, the real question is whether this is the final bottom, or if ETH will retest lower levels.
🔹 Further Fibonacci Retracement Analysis
Next, we take a larger Fibonacci retracement, from the low of $879.8 on 18th June 2022 to the high of $4109. The 0.786 Fib retracement at $1570.85 appears to be a critical support zone, as it also coincides with the POC in the volume profile of the entire market structure. This indicates that the $1570-$1600 region is a significant area of interest for buyers to step in.
🔹 Log Scale Fibonacci Confluence
To further strengthen this analysis, applying the same Fibonacci retracement on a log scale shows the 0.618 Fib retracement at $1585.17, very close to the POC and 0.786 Fib level, reinforcing this region as a major support zone.
🔹 High-Probability Long Setup
If ETH revisits the $1570-$1600 zone, this forms an ideal high-probability long setup with excellent risk/reward potential. A potential R:R ratio of more than 20:1 could materialise if this setup plays out and price targets $5000 as a take-profit level. The stop loss placement will determine the exact risk-to-reward, but the reward could be massive if this level holds.
💬 What are your thoughts? Will Ethereum find its bottom around these key levels? Excited to see how this develops! 🚀
🔹 Fibonacci Retracement from October Low (2023) to December High (2024)
Starting with the Fibonacci retracement from the low of $1520.85 on 12th October 2023 to the high of $4109 on 16th December 2024, ETH recently hit the 0.886 Fib retracement at $1815.9 and saw a bounce. This area aligns with the Point of Control (POC) from previous price action, a potential signal that this could be a major support zone.
However, the real question is whether this is the final bottom, or if ETH will retest lower levels.
🔹 Further Fibonacci Retracement Analysis
Next, we take a larger Fibonacci retracement, from the low of $879.8 on 18th June 2022 to the high of $4109. The 0.786 Fib retracement at $1570.85 appears to be a critical support zone, as it also coincides with the POC in the volume profile of the entire market structure. This indicates that the $1570-$1600 region is a significant area of interest for buyers to step in.
🔹 Log Scale Fibonacci Confluence
To further strengthen this analysis, applying the same Fibonacci retracement on a log scale shows the 0.618 Fib retracement at $1585.17, very close to the POC and 0.786 Fib level, reinforcing this region as a major support zone.
🔹 High-Probability Long Setup
If ETH revisits the $1570-$1600 zone, this forms an ideal high-probability long setup with excellent risk/reward potential. A potential R:R ratio of more than 20:1 could materialise if this setup plays out and price targets $5000 as a take-profit level. The stop loss placement will determine the exact risk-to-reward, but the reward could be massive if this level holds.
💬 What are your thoughts? Will Ethereum find its bottom around these key levels? Excited to see how this develops! 🚀
Mastering Fibonacci for precision trading
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Mastering Fibonacci for precision trading
🔹 Sharing high-probability trade setups 🔹
⚡ Unlock the power of technical analysis! ⚡
🔹 Sharing high-probability trade setups 🔹
⚡ Unlock the power of technical analysis! ⚡
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.