Ethereum (ETH/USD) Bouncing Off 61.8% Fib Retrace of Rally

Tradablepatterns's picture

Ethereum (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 MACD has just negatively crossed this past week), the 61.8% Fib presents a strong zone of support, and mitigates some of the bearish sentiment arising from the weekly MACD 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 MACD blue line positively cross, joining the already bottomish daily RSI and Stochastics. 


Ethereum (ETH/USD) Daily Chart

ETH/USD Daily Chart



Bitcoin (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 downchannel support. Although still vulnerable in the next several weeks to more downside (as the weekly MACD 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 MACD blue line flattening and perking up, joining the already bottomish daily RSI and Stochastics. 


Bitcoin (BTC/USD) Daily Chart

BTC/USD Daily Chart


Click here for today's technical analysis on Raw Sugar, USDCHF



Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and cryptocurrency markets can be analyzed to enhance trading performance. Tradable Patterns’ daily newsletter provides technical analysis on a subset of three CME/ICE/Eurex futures (commodities, equity indices, and interest rates), spot FX and cryptocurrency markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
PN7's picture

Fib?  I have no idea what Fib means.  (From the article)..."bouncing strongly off the 61.8% Fib retrace..."  So I Googled it.  The most interesting definition I found was "Fucking Illinois Bastards"  Wisconsinites apparently call the people from Illinois "Fibs" because of the way they drive.  I had problems understanding the other acronyms in the article also.  I think it may be time we return to actually using real words... or "AURW" in acronym speak. 

King of Ruperts Land's picture

Fib as in Fibonacci Sequence is the series of numbers: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34,
Search on: Elliott wave

Silver Savior's picture

I am not worried about Ethereum or any of the cryptos. The run up showed there is great demand for such technologies and hardly any of the population bought any to begin with. 

Think about what all of it will be like when people really start waking up to all this on a grand scale. They should all be pissed to all hell right now at fiat currency and should walnt to get in it.

People who are not getting in on this are letting their horses loose. And I am not even a fan of digital currency I am into precious metals and paying for things in cash. Its just a way to make easy money. Also if you do need to transact online you  can bypass banksters. Youthink I like this stuff per se? lol.

Michael Musashi's picture

You and I think alike.

I was at a major (huge) electronics store yesterday asking if they had Bitcoin hardware wallets. Not a geek in the place could give me a straight answer (or even know what it is). I finally just walked over to where they have USB ports and searched myself. No luck. I guess I've got to buy from Amazon-nopoly.

This is just a quick way to make a couple thousand extra bucks for me. My wife thinks I'm silly, but making easy money is fun. And in a few days the fun will begin....



Silver Savior's picture

I am about to buy a hardware wallet online. I will not tell anyone in my family because they would just think I am wasting money on crap. But I am actually buying it to secure their future! 

Save_America1st's picture

check ebay out instead for a Ledger Nano S...I found one for 119 and free shipping a couple days ago.  It's supposed to be one of the best out there right now, so I figured I'd give it a try. 

And I'm also in the same camp as Silver Savior.  I'm 90% phyzz and have only been playing around w/ cryptos for the last few years.  People are freaking out about ETH dropping like it just did, but people also need to remember that everyone has a different starting point.

I started with ETH at 7.50, so do you think I give a fuck that it ONLY sits now at 190/each???? lol  That's still about a 2400% increase. 

For those who never got in or who chased it too late, well that's just how it goes...everybody has a different entry point and others who don't have the balls to give it a try will never understand how to play cryptos to get free phyzz.

My advice is to just open an exchange account, get a wallet account, buy some BTC, ETH, and LTC.  It's not like you have to buy a whole fucking BTC for 2200 bucks.  Buy the dips and buy small fractions of cryptos.  You can buy 100 dollars worth of BTC and 100 dollars worth of ETH. 

Then just buy small amounts on dips as you go.  Get them off the exchange, i.e. Coinbase, and put them in cold storage in an offline paper wallet or USB wallet and just keep adding small amounts in the future.

When they skyrocket again and you want to skim some profits for free phyzz just upload your cryptos back onto the interweb and do what you gotta do. 

It ain't rocket surgery, bitchez.  ;-)

And as always...keep stackin' that phyzz.  The Cartel is fucking giving Ag away at anything under 30/oz and we have a long way to go to get back to that level.  Hell, I could actually say that they're giving it away at anything under 100 or 200 per oz.  But we'll keep it low and slow for now.  Just keep stackin'.


Aftoward's picture

I have a Ledger Nano S. Aside from how difficult it is to enter a 24 word recovery phrase for firmware upgrades, it is really worthwhile. The upside of buying a new one is that the latest rev of firmware does not require this mechanism any longer. You'll be able to upgrade on the fly. I just bought a Ledger Blue that is supposed to ship next week. I'm looking forward to the bigger display. Expensive as hell. All being funded by crypto profit though.

Michael Musashi's picture

Exactly. All the people screaming things like, "it's not money" or "it will never replace gold," I laugh at you! It's not about either, it's about a new economy being born. This isn't going away, so folks should really spend 15 minutes a day learning about it, instead of 15 minutes a day bashing it.

P.S. - Thanks for the tip!

Save_America1st's picture

no prob on the tip...actually, here's the ebay link I bought mine on, and I forgot...they had a "buy now" at 119, but also a "Make Offer" button.  So at first I offered 100 and it immediately rejected.  So then I counter-offered for 110 and it immediately accepted it.

I think I had to pay like 7 bucks sales tax too, so all in all it was 117 which is way cheaper than anywhere else I could find by far right now.  The only catch is that it says this is a pre-sale which won't deliver until late August or early September.  I figured I really didn't care and could wait since the price was right and I already have my cryptos stored in different secure wallets for now anyway. 

And if anyone wants a really good explanation of how and why the main cryptos sold off like they did over the last few days I recommend listening to yesterday's vid post on the youtubes by Jsnip4 who really seems to know his stuff with these and he's got first-hand insider info from Clif High of Half Past Human and Bix Weir:



OldPost's picture

Gone choice........

Jim Shoesesta's picture

Fibs, what a moron. 

Szlachta's picture

I hope all crypto's (especially those that GPU's are good for) collapse.  Video cards are impossible to find. Morons have even started buying out 1070's and 1080's.  An RX 580 cost 1000-1200 local currency. Now 2400+

Silver Savior's picture

I should start reselling video cards I get from scrap computers. Usually I just sell them for gold recovery. 

bshirley1968's picture

Fibonacchi, Baby! Yeah!

What a crock of shit!  The original common core math, right? Funny!

All these piss ant traders being played with the Fibonacchi voodoo.  Get all the pigs going the same direction at the same time........and slaughter them all at once.  Forget this onesy-twosy waste of time.

O, O, I know!  Let's call it something cool and smart sounding and the little pigs will all jump for joy that they have found the secret of what makes the world go round.  All we have to do is play along so they think they are so smart.  It's alway easy to slaughter them when they think they are smart. Hehe.

Co-opted, bitches.  Until you remove the central bank's free money system there is no escaping the manipulation.  And if you think you are ever going to make need to try smoking something else.

NugginFuts's picture

This just in: Black Tulip Bulbs making a comeback. Algos being devised already to facilitate highly leveraged manipulations of the exclusive market. Get in at the ground floor!

Michael Musashi's picture

It's way beyond tulips, brother. A lot smarter people than on this site are involved in Bitcoin and Etheruem. Watch for fireworks after next week.


All this digital lunacy is bullshit, smoke, and mirrors, except for one up and coming product.

Enter the Tmosley Shaved Muppet Sucker Coin.

Always worth more than the day before, 21 million, and making no more.

Is it credit, currency, debt, or a token ?

Nobody knows what the creator was smokin',

He said with a grin as he packed your cash in,

"You'll pay to get in, and out of it too. "

Michael Musashi's picture

Let me ask you this: If you can piss away $500 - $1000 a month in a bar (or whatever) why weren't a person bet that both Bitcoin and Ethereum are both going to retrace after the noise dies next week?

Should someone sell their house to bet on it? Absoletely not. But if you've got $1000 bucks sitting around, why not take that bet? There are a lot of smart folks involved in this space, even folks who quit their Wall Street cash cow gigs to jump onboard.

It's getting bigger than all its individual parts, and this soft fork approaching is proof of that.

This space does not die this month. It's going to surprise a lot of people, and probably spook the govt, too. But by the time they step in, I'll be out of the market.

King of Ruperts Land's picture

No one has to sell their house on this one. Its going up 22 thousand percent. Average Joe can buy 1 or 1/2 a Bitcoin at this price, without triggering a divorce. That is if they hurry, the are not that many being minted about 12.5 every 10 minutes;

pipes's picture

I gauran-fuckin-tee you that these know-nothing neanderthal cretins WILL NOT shut their cake holes when the end of the crypto world date (2012 for Bitcoin) arrives, and no irreparable harm comes as a result. 


TheReplacement's picture

That isn't exactly accurate.  How is a cryptocoin any different than any of the oodles of financial products being traded by the anti-coiner on ZH? 

Also, you could get into crypto without buying a coin from anyone.  You can mine it.  Pay attention and make a profit, or don't and don't. 

At least the cryptos are not controlled by the central banks of the world, yet.

Cryptos are not money.  Neither are dollars or bonds or stocks.  Keep that reality in mind and go buy some gld or slv or even vix or xiv and come back and tell us how it is so much better.  Cryptos are a currency of sorts and perfect vehicle for speculation.  Know the rules before you play.

If you want to save for posterity, get gold and silver.  Say....., you could mine crypto and exchange the profits for real money.  Just don't get caught buying cryptos and holding the bag.



nmewn's picture

"Cryptos are not money.  Neither are dollars or bonds or stocks.  Keep that reality in mind and go buy some gld or slv or even vix or xiv and come back and tell us how it is so much better.  Cryptos are a currency of sorts and perfect vehicle for speculation.  Know the rules before you play."

Well stated.

The ONLY reason I ever said (and continue to say) negative things about them is because of simply that...I don't want people to get hurt. Many people still come around here for "financial advice"...too lazy or ignorant is no reason for them to get scammed and be bag holders.


Any nation who's "money" crashed 60% in six-seven months would be called a Zimbabwe or Venezuela ;-)

King of Ruperts Land's picture

True. Money doesn't go up in value. Gold and silver retain value. This is more like tulips or south seas stock. It just shoots up and makes some lucky speculators incredibly wealthy.

ptolemy_newit's picture

What amount of volume took bitcoin down 25%

The coin is trash!!!!!!     the block chain is usefull to reduce and secure financial transaction records and the tax due.

to bad russia's 15 trillion a sec computing ends that pipe dream, you can effectively control 100 percent of any network and alter transactions however you wished

TD bank,  so sorry your late, slow and need better talent (fire the pervert)

harrybrown's picture

The Crypto's have just been wheel'd onto the markets (fraud fest) for two blindingly obvious purposes
1. To take the sting out of the rising metal prices to buy time for the dying $....
2. The Elites needed a "willing party" to test their new cashless currency system for post petro dollar...
Lots of folks already been burnt, many more to come when the test phase is complete & da joos say "Pull it"
There has been no shortage of willing suckers who have been lured by dreams of temporary wealth (sound familiar?)

If one can't ID the idiot at the card table in the first 5 minutes....

Job done Said Jacob & Co who are currently stacking the unloved relic...when will people learn!

Michael Musashi's picture

"Lots of folks already been burnt" LOL! Not by Bitcoin, but by the players. On the other hand, there are many players out their supporting themselves from the industry and doing quite well, too. The industry has grown, and will continue to grow.

So far, I haven't met anyone in Bitcoin that doesn't like gold or is using Bitcoin to "preserve wealth." Only a complete mental retard would think such a thing, and so far I have only met and read intelligent people on the subject.

Please stop with the gold, money, and conspiracy talk. It's lame and absolutely ridiculous.