What the heck is happening in the crypto world? Is Ethereum finally dead? Is ETH taking its last breaths?
Not likey. In fact, the recent pullback on the ETH-USD market is probably one of the best and healthiest things investors and traders could have asked for. Given ether’s 300% price rise in just over a month, this pullback has a left many traders and investors bullish on the ETH-USD market.
On a macro-scale, we can see ETH-USD had a very nice, textbook market correction along the 50% Fibonacci Retracement Line (shown in brown). This test of the 50% line was immediately rejected and is illustrated by the massive spike in volume (shown in blue).
For healthy, growing markets 50% retracements are a very common occurrence, and the market response to the retracement can be viewed as a sort of litmus test for the strength of a market (i.e. a positive rejection of the 50% line with upward price action tends to indicate the market still desires higher prices, and a negative move from the 50% line will typically indicate the market is still extended and thus overvalued).
Figure 1: ETHUSD, GDAX, 12HR …read more