The image above displays Ethereum’ weekly candlestick chart. It’s important to identify levels where we may find stiff resistance and important highs for any financial instrument. One of the easiest and best ways to do this is through the use of Fibonacci Extensions. I’ve drawn three here on Ethereum’s chart. The first, colored in green, is the extension from the Dec 26 2016 low to the January 15 2018 high and then to the first retracement low in November 2018. The important extension for this swing is the 61.8% at 2156.05. The next major extension, colored in red, begins at the Nov 18 swing low to the June 2019 high and then to the confirmation swing low of the Covid Crash in 2020. The important Fibonacci extension number for the second swing is the 200% level at 2055.26. The third and final extension level, color in light blue, is from the Covid Crash low to the June 2020 high and the June 2020 low. That final Fibonacci extension level is the 241.4% level at 2009.78. We can see a great lcustoer of Fibonacci extension levels all converging between the 2000 and 2200 value areas. Look for the new swing high to be around this level.
Above: Litecoin (LTC/USD) Weekly Chart with Fibonacci Extensions
Litecoin still has not reached its prior all-time high, so it may be an interesting to watch as the broader market either continues to rally or retraces. Litecoin certainly does have a history of operating in a non-correlative manner from time to time against Bitcoin and the broader market. There are two Fibonacci Extension levels that I think are important to watch for, which utilize nearly the same date structures as Ethereum’s. The first Fibonacci extension cluster is where we find 61.8% extension of swing one at 388.73 (green), the 141.4% extension of swing two (red) at 419.20, and the 261.8% extension of swing three (blue) at 396.65. The value area of this cluster is very near the all-time high and encompasses a price range between 380 and 445. The second Fibonacci extension cluster would mean new all-time highs were created. The first extension level is the 88.6% at 1346.05 followed by the second swing extension of 200% at 1265.05 and finally the third extension of 400% at 1303.64%. The price ranges between 1250 and 1350 create this second extension level.
Above: Cardano (ADA/USD) Weekly Chart with Fibonacci Extensions
Similar to Litecoin, Cardano has two key Fibonacci Extensions clusters. Swings one, two and three are color coded the same as the prior two cryptocurrencies we’ve reviewed. The first cluster zone encompasses the Fibonacci extension 127.2% at 1.5142 of swing one, 300% at 1.5991 at swing two, and 141.4% of 1.4722 of swing three. The second extension zone is a fairly conservative one compared to Litecoin’s second cluster. For Cardano’s second Fibonacci extension cluster, we can see it encompasses the 141.4% extension of swing one at 2.376, the 327.2% extension of swing two at 2.3682, and the 1.618% extension of swing three at 2.2600.
Cryptocurrency Buy and Sell Entry Levels: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), NEXO, and Cardano (ADA)
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