Chart of the Day - Wednesday, February 3rd, 2021
February 3, 2021
Today’s Chart of the Day was shared on Twitter by Greg Rieben (@gregrieben). It's a weekly candlestick chart of the second-largest cryptocurrency, Ethereum ($ETHUSD). Ethereum continues to print fresh all-time highs. Why do we care about all-time highs? Because at all-time highs, there's virtually no overhead supply to prevent price from moving significantly higher. When price is in uncharted territory like this, Fibonacci extensions are one of the only useful tools for figuring out a price target. In this case, the 161.8% Fibonacci extension is around $2,500, which represents more than 50% upside from the current price of $1,600.