Ethereum (ETH/USD) Bouncing Off 61.8% Fib Retrace of Rally
(ETH/USD) is bouncing strongly off the 61.8% Fib retrace of the rally that began at the beginning of the year. Although still vulnerable in the next several weeks to more downside (as the weekly has just negatively crossed this past week), the 61.8% Fib presents a strong zone of support, and mitigates some of the sentiment arising from the weekly negative crossover. A sustainable longer term bottom will have to coincide with a similar long term bottom in BTC/USD (which is bouncing off a 50% Fib retrace of a steep rally since late March, but rebounding from only a 38.2% Fib retrace of a longer term rally since 2015). Either way, the current ETH/USD bounce can be expected to last at least several days. Bulls will want to see the daily blue line positively cross, joining the already bottomish daily and Stochastics.
Ethereum (ETH/USD) Daily Chart
(BTC/USD) is bouncing strongly off the 50% Fib retrace of the steep rally that began in late March, roughly coinciding with the daily chart's support. Although still vulnerable in the next several weeks to more downside (as the weekly has just negatively crossed this past week), the current bounce can be expected to last several days. Keep in mind that if the Fib lines are drawn based on the rally of BTC/USD from the 2015 base, a 50% Fib retracement implies considerably more downside. Nevertheless, short-term bulls will look out for the daily blue line flattening and perking up, joining the already bottomish daily and Stochastics.
Bitcoin (BTC/USD) Daily Chart
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