38.2% Reversal: How to Take Advantage of Recent Ethereum Price Spike

Since the COVID crash of March 2020, bulls have reversed 38.2% of the 600-day mega bullish trend, with recent Ethereum's highs being hit from under $100 to over $4600. The latest ETH's spike is taking place against b background economic &/or politi[...]

Since the COVID crash of March 2020, bears have corrected 38.2% of the 600-day mega bullish trend, which peaked at the current ETH's all-time high: a spike from below $100 to over $4600. At present, bulls are trying to maintain a critical level of $1,000.

Technical Analysis is a method of forecasting the future price of an asset by analyzing its past price movements.

Grizzly has developed a number of tools for technical analysis, including a software package that helps traders make

The Daily Chart is a daily financial news

During its correction, ETH has hit two significant Fibonacci retracement levels: 23.6% at $1,900 and 38.2% at $1,000.

Technical analysts are following the support and resistance levels closely. If buyers fail to defend the psychological support at $1,000, a drop to lower levels is very likely – the next Fib level is at 50% correction and a price of $650. Further below, another support is at 61.8% (the golden level), which lies at $400.

Moving averages are used by traders to smooth the price of a security.

The current market price of the MA20 is $1132, the MA50 is $1575, and the

The chart of ETH/BTC

On the BTC pair chart - the weekly timeframe, the uptrend that started in September 2019 hit a barrier at 0.088 BTC.

The structure turned bearish since the price formed a lower low following a higher high. As shown below, ETH has corrected more than 23.6% of the macro-scale trend. This level - 0.06 BTC - is currently acting as horizontal resistance. The following support levels are also marked on the chart:

Analysis of Transaction Blocks

The SMA 30's average of the number of transactions over a period is used to determine market volatility.

The total number of transactions in which a transfer of tokens has been executed.

An increase in the number of transactions often accompanies the rise of a cryptocurrency's price. Since November 2021, when Ethereum reached its all-time high, the number of transactions on its network has fallen sharply and is now at its lowest level over the past year.

When reversal signals emerge, it is expected that the on-chain activity will increase.