Ethereum is poised to breakout in a big way
– 25% move higher likely, new all-time highs target.
– Ethereum is set up for a major breakout
The green trendline on Ethereum’s daily chart forms off of the bodies of two candlesticks found on February 20th, 2021 and March 13th, 2021. You will see that during the intraday period, traders have pressed prices higher. If the daily chart closes above that trend line, watch out for an explosive move higher. How high? The answer to that question comes from two Harmonic Patterns known as a Bearish Crab and a Bearish Deep Crab. For those of you unfamiliar with what Harmonic Patterns are, they have really nothing to do with harmonics and everything to do with Fibonacci levels. Nearly 100% of all work in the field of these patterns has been completed by Scott Carney – he is the person responsible for the discovery of these patterns and we should really be calling them Carney Harmonics instead of what people today call Gartley Harmonics. The two patterns represented on the chart have the following interpretations:
1.The Bearish Crab pattern is one of extremes. The best way to think of how a bearish crab pattern finishes is how a rising wedge finishes. In a nut shell, the bearish crab pattern is one where price moves way to high, way to fast and just when you think it won’t go higher, it continues higher before promptly and violently reversing. The price range where the reversal zone (PRZ = Potential Reversal Zone) is located is generally in a small, tight range. This is one of the only harmonic patterns I use in my own trading.
2.The bearish deep crab is a very, very picky and precise pattern. While it is mostly similar to the standard crab pattern, it also represents a failed or invalidated bat pattern (another harmonic pattern). Like the bearish crab pattern, the bearish deep crab pattern has a small PRZ.
One can think of the PRZ as two opportunities. First, it can be an opportunity to take some profit if you have decided to buy on the break of the trendline. The second opportunity is to trade the harmonic pattern as Carney suggests in his work. Because both the bearish deep crab and deep crab patterns share a PRZ around 2505, that is a clear and cut level I would look at to take profit and to open very low risk short trade. If you were to short Ethereum utilizing one or both of these patterns, then there are some corresponding profit targets to look at for covering/closing your short. The bearish crab pattern’s profit target is in a range between 1755 and 2041. The bearish deep crab pattern’s profit target is in a range between 1800 and 2100. You’ll note that the profit target ranges also have a shared price level between the two patterns.