ETHUSD - short term correction likelyI applied a Fib fan to the ETHUSD chart.
As you can see below the .382 and the .5 fib lines have been hit by the local highs which have been formed after the top on Feb 15th.
The .5 line acted as resistance at 225 USD and is now the highest trendline in the given time frame.
ETHUSD is overbought on the daily, which is also a good sign for a correction to be imminent.
Zoomed in:
On the fundamental side we can see that the Covid-19 measures are slowly released and the markets are currently optimistic that the whole economy will be able to ramp up again. That's also the reason for the high correlation between crypto and traditional markets, that we haven't seen before the crises. We will have to look closely on index charts like the S&P500, the US30 and CFD's like Gold to spot a possible bear break.
A highly bullish move above the .5 fib trend line could send prices to the 250s again.
In a bearish scenario the price of ETH could still fall back to the 0 fib trend line, what would send prices back to 140s. This would be triggered by a downside break of the .25 fib trend line, that has also been marked in the chart.
The current market behavior reminds me on the 2017 bubble. FOMO was on its highest levels ever and people couldn't resist to hop onto the ride. In the end many lost a fortune when the price declined sharply at the 1400 level. So be careful and set up your trades properly. Good luck!
