Why Ethereum is Poised To Fall At Least 40% By April 18th! (ETH)
Hi friends! Welcome to this update analysis on Ethereum! Before you, I have the daily ETH chart. I've switched to the daily, so that we can zoom out, and take a broader look at ETH, to determine the likely outcome, of the longer term picture. And I have to say, the technical prognosis is grim. First off, we have a massive head and shoulders pattern forming on the chart, which is outlined in pink. The sheer size of this pattern, actually suggests a retrace to zero, assuming that it would correct to it's full potential. Actually, the height of the head would produce a full scale correction into negative territory, but since crypto can't be worth negative dollars, we'll just call it zero. Now I know people are probably shouting at their computers, or even ripping out their own hair out at the aforementioned statement, but if you read any literature on calculating the price target of a head and shoulders pattern, you will see why my statement is legitimate. Of course, patterns do not always rally or correct to their full potential. We may see a breakdown of the large head and shoulders pattern, that only sends the price down to the rising black trendline. Therefore, a breakdown would have occurred, but not to the full potential of the head and shoulders pattern.
Looking at the recent price action inside of the right shoulder, you can see that a smaller head and shoulders was formed at the top of it (in red,) which broke down into a bear flag, that ETH is still currently trading in. So, we can see that there is a continuation of bearish patterns, inside of the right shoulder of an even larger head and shoulders pattern. It's obvious to see that a breakdown seems imminent. The neckline of the big head and shoulders pattern is at the 565.50 level, where I have the "bear flag target." Judging by the formations that have been created, that level should be reached, and surpassed.
You can see that ETH remains trapped inside of a large downtrend channel (in blue.) If ETH stays inside of the channel, we will see a test of the black rising trendline by April 18th at the latest, and that is a 100% certainty. So, assuming that ETH stays inside of the downtrend channel, a test of the black trendline should happen within a month or so. Whenever ETH does test that level, assuming we are inside of the downtrend channel, the price will be at most 415. In other words, in the best case scenario, ETH is facing a 40% drop, from the current levels, at a bare minimum, by April 18th, if we stay inside of the downtrend channel. Let that marinate.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
Looking at the recent price action inside of the right shoulder, you can see that a smaller head and shoulders was formed at the top of it (in red,) which broke down into a bear flag, that ETH is still currently trading in. So, we can see that there is a continuation of bearish patterns, inside of the right shoulder of an even larger head and shoulders pattern. It's obvious to see that a breakdown seems imminent. The neckline of the big head and shoulders pattern is at the 565.50 level, where I have the "bear flag target." Judging by the formations that have been created, that level should be reached, and surpassed.
You can see that ETH remains trapped inside of a large downtrend channel (in blue.) If ETH stays inside of the channel, we will see a test of the black rising trendline by April 18th at the latest, and that is a 100% certainty. So, assuming that ETH stays inside of the downtrend channel, a test of the black trendline should happen within a month or so. Whenever ETH does test that level, assuming we are inside of the downtrend channel, the price will be at most 415. In other words, in the best case scenario, ETH is facing a 40% drop, from the current levels, at a bare minimum, by April 18th, if we stay inside of the downtrend channel. Let that marinate.
I'm the master of the charts, the professor, the legend, the king, and I go by the name of Magic. Au revoir.
This has been your not-so-humble market wizard, droppin' knowledge like bombs in this place! Please follow, comment, like, and share on social media. Good luck trading everyone!
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-Magic loves you-
-JD-
