The Ethereum Merge is coming, and let’s analyze ETHBTC. It will be engaging in the following weeks and months as the battle for the most prominent crypto in the world will develop.
For the purpose of this Trading Idea, let’s assume we are bullish on ETH long-term. This shouldn’t depend on your TA but rather on fundamental analysis and sentiment outlooks. If you believe in ETH long-term, you’d consider the recent drop a chance to buy in.
Let’s check the Fibonacci retracement levels for the ETHBTC 1-day chart. We’d assume that the trend reversed on July 13 at 0.0532.
As you can see there’s a slight problem with this approach as we just broke through the 0.0772 support. If ETHBTC goes further down, you should eye the 0.0727 level. However, the 50% ratio (which is not an official Fibonacci ratio but often works in TA) can turn out to be the right level to buy in.
If the 0.069 support is broken, we would really consider assuming that the trend has changed, and these are not retracement levels for an ETHBTC uptrend. Even if you are bullish on ETH long term, you know it would need time to dominate.
As for the timeframe for reaching these levels, we’d expect them to be checked soon, as the price action volatility is through the roof around the Merge supposed to happen on September 15. Expect more 5% price swings like the one on Monday.
We are posting this TI when ETHBTC is trading around 0.0756. A bearish strategy would be to sell and take a profit of approximately 0.0727, and the bullish scenario is to wait for the upcoming supports to buy in.