Ethereum -Technical Analysis

Ethereum the second largest cryptocurrency behind Bitcoin, has shown a nice return in 2023, higher by around +28%. But, as asset prices rise, pullbacks become inevitable, and healthy for further gains ahead. Fibonacci retracement is a common way of understanding the extent to which an asset is retracing the most recent high or recent low. Below is a daily chart of Ethereum, with Fibonacci. Typically I would expect a healthy pullback to the 50% retracement level, which would put ETH at the 1431. Also possible, is the present pullback, at the 38.2% level could hold as support before the next move higher. Daily chart below.    

It will be interesting to see where Ethereum trades from here. If the 38.2 % pullback holds or retraces lower to the 50% fibonacci level around 1431. Thank you for reading.

The Stock Market Through Charts

The reason we look to the charts is to get an idea where stocks have been and what a potential scenario lies ahead for equities.  Even though we are intermediate to longer term investors, viewing charts can give us an edge on entering or exiting a position or hedging a portfolio in the short term need be.  So what are the charts showing us through mid week. Stocks have been consolidating recent gains over the last three days as shown below by a 60 minute chart of the S&P 500 index.

I talked about Fibonacci retracement levels before in this post Fibonacci Retracement.  The chart below shows that stocks have consolidated around the 38.2% level, which is typical Fib consolidation prior to a potential move higher. 

Bottom Line:  Charts are just one of many tools to help manage risk. Fundamentals and valuation are two other important areas of focus when analyzing individual stocks or the market as a whole.  This weekend I am going to dedicate a post to just the fundamentals of the market and where stocks are at present.  As always thanks for stopping by.

Fibonacci Retracements Levels

Another tool I occasionally use is Fibonacci retracement levels.  Stocks or major indexes will often pull back or retrace a percentage of the previous move before reversing. These Fibonacci retracements often occur at three levels: 38.2%, 50%, and 61.8%. Actually, the 50% level really does not have anything to do with Fibonacci, but traders use this level because of the tendency of stocks to reverse after retracing half of the previous move. So what do the fibs say about our stock market in the near term?  Below is a chart of the S&P 500 with Fibonacci levels drawn over the chart. 

As seen above, stocks have retraced down to the 50% level and bounced higher off that level. Stocks could also be putting in a higher low if that is indeed the pullback level before moving higher.  The week ahead is important with many earnings reports being announced.  AAPL on Tuesday, and INTC on Wednesday and MSFT will report on Thursday.
 

Bottom Line:  This week will determine the near term direction of the market.  If using just Fibonacci retracement levels then we have to give a move up for stocks the benefit of the doubt, as they hit the 50% retrace and moved higher. A break below that 50% line then the 61.8% level becomes the next area of support. 

Contact: 586-431-8000