Ethereum (ETH) – In the process of forming a foothold around the 38.2% Fibonacci levelPosted on Wednesday, April 13 2022 at 9:31 pm GMT+0000
Ethereum (ETH) rebounded near the 38.2% Fibonacci level of the 2,159 – 3,581 bullish wave, snapping a 10-day losing streak. Although the positive slope of the 20-day exponential moving average eased, its persistence beyond the 55-day is feeding optimism that the bullish bias would prevail for a bit longer.
Currently, the oscillators are suggesting that the bearish momentum is waning. The ROC is setting the stage for an upturn some distance below its equilibrium level, while the stochastic posted a bullish crossover within the %K and %D lines in the oversold region.
So, if the world’s second digital currency manages to settle a base in the proximity of the 38.2% Fibonacci level at 3,037 and jump beyond the 20-day exponential moving average, it will thrust higher towards the 4/1 Gann angle and the most recent top at 3,581 overlapping with the 30th of December inside swing low. A decisive close beyond the latter will confirm additional buying activity likely towards the 4th of January high at 3,894, before the spotlight turns to the 4,100 – 4,200 congested area of highs posted during December 2021.
Alternatively, following a decisive drop below the 38.2% Fibonacci level and Monday’s low at 2,950, sellers will march towards the 2,774 – 2,702 support zone molded by the 9th of March inside swing high and the 61.8% Fibonacci level. If this region proves easy to get through the sell-off could accelerate towards the 78.6% Fibonacci at 2,463 and the adjacent 7th of March low, ahead of the January bottom at 2,159.
To summarize, Ethereum (ETH) appears to be in the process of forming a foothold around the 38.2% Fibonacci level, with the aim to underpin the current structure. Yet a sustainable move below 2,950 could pave the way for a deeper retracement.