1. Fibonacci Magnet
• 0.618 Fibonacci Retracement: The golden ratio at 0.03092 is a magnet for price in corrective markets. This level has been a historical pivot point in prior market cycles, and while ETH/BTC hasn’t touched it yet, it appears to be trending toward this critical support zone.
• The fact that the price hasn’t yet hit this level leaves room for a final, likely exhaustion move, which often marks the end of a trend.
2. Descending Wedge Pattern
• ETH/BTC remains within a descending wedge, a known bullish reversal structure.
• Price action is converging as it approaches the apex, which aligns closely with the 0.618 retracement and long-term structural support.
• The wedge indicates that momentum is weakening on the downside, often a precursor to a breakout.
3. Long-Term Horizontal Support
• The 0.03 level has historically been a strong psychological support for ETH/BTC, acting as a base during the early phases of 2020 before the explosive bull run.
• Combining this horizontal level with the Fibonacci retracement strengthens its likelihood of being a key reversal zone.
4. Trendline Confluence
• The descending red trendline from 2021 has contained ETH/BTC’s downtrend, but price is now reaching a crucial point where it will either:
1. Break below and invalidate the setup (unlikely given the confluence of factors).
2. Hold at this major trendline, completing the wedge structure and setting the stage for a reversal.
5. Timing Cycles
• Historically, ETH/BTC bottoms before Bitcoin halvings and rallies during the altcoin seasons that follow.
• With the halving approaching in 2024, ETH/BTC appears to be aligning with this pattern. A touch of the 0.618 retracement would coincide perfectly with historical cycle lows.
Why This is Critical
This zone represents the final test for ETH/BTC’s current downtrend:
• A touch of 0.618 would complete the technical correction.
• The wedge pattern apex, horizontal support, and Fibonacci levels create a perfect confluence for a bottom.
• Failing to hold here would signal a significant break in structure, but such a scenario appears unlikely given the timing and technical setup.
Conclusion
While ETH/BTC hasn’t yet hit 0.618, it’s crucial to watch for a touch of this level in conjunction with volume and price action at the descending wedge apex. If ETH/BTC reacts strongly at or near 0.03092, this would likely confirm the bottom and set the stage for a breakout toward 0.045 and beyond.
• 0.618 Fibonacci Retracement: The golden ratio at 0.03092 is a magnet for price in corrective markets. This level has been a historical pivot point in prior market cycles, and while ETH/BTC hasn’t touched it yet, it appears to be trending toward this critical support zone.
• The fact that the price hasn’t yet hit this level leaves room for a final, likely exhaustion move, which often marks the end of a trend.
2. Descending Wedge Pattern
• ETH/BTC remains within a descending wedge, a known bullish reversal structure.
• Price action is converging as it approaches the apex, which aligns closely with the 0.618 retracement and long-term structural support.
• The wedge indicates that momentum is weakening on the downside, often a precursor to a breakout.
3. Long-Term Horizontal Support
• The 0.03 level has historically been a strong psychological support for ETH/BTC, acting as a base during the early phases of 2020 before the explosive bull run.
• Combining this horizontal level with the Fibonacci retracement strengthens its likelihood of being a key reversal zone.
4. Trendline Confluence
• The descending red trendline from 2021 has contained ETH/BTC’s downtrend, but price is now reaching a crucial point where it will either:
1. Break below and invalidate the setup (unlikely given the confluence of factors).
2. Hold at this major trendline, completing the wedge structure and setting the stage for a reversal.
5. Timing Cycles
• Historically, ETH/BTC bottoms before Bitcoin halvings and rallies during the altcoin seasons that follow.
• With the halving approaching in 2024, ETH/BTC appears to be aligning with this pattern. A touch of the 0.618 retracement would coincide perfectly with historical cycle lows.
Why This is Critical
This zone represents the final test for ETH/BTC’s current downtrend:
• A touch of 0.618 would complete the technical correction.
• The wedge pattern apex, horizontal support, and Fibonacci levels create a perfect confluence for a bottom.
• Failing to hold here would signal a significant break in structure, but such a scenario appears unlikely given the timing and technical setup.
Conclusion
While ETH/BTC hasn’t yet hit 0.618, it’s crucial to watch for a touch of this level in conjunction with volume and price action at the descending wedge apex. If ETH/BTC reacts strongly at or near 0.03092, this would likely confirm the bottom and set the stage for a breakout toward 0.045 and beyond.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.