ETH can go to 2k if patterns continue - Introducing the AMU theo

31 בינו׳ 2022

Hey everyone, it has been a while since i dedicated an entire analysis to ETH.

So lets take a look at the Daily which provides us with some good patterns and allows us to note some important Support and resistance levels.

First of all note the repeating bear flag pattern. We can note four of them clearly formed and we are now in what seems to be the fourth.

Introducing the "Aproximative measurement unit" - a unit that helps us identify potential future moves by looking at the past ones. In this case , how much did the price drop after exiting each bear flag. If we look closely we can establish that the first move set the tone more or less by giving us an approximative measurment unit. The following moves were two times the first move and of course we can project this unit on the future move of the price .

Market context lets us think bearish thoughts so i will start with the first scenario:

Bear scenario : Using the AMU(Approx measurement unit) we project the move to the downside and note first potential target at around 2k which is a known support and a second target at the $1600 level which is also known as an important level in ETH.

Bull scenario(Less likely): Using the AMU we hit the trendline and then we go test the Kumo. Given the curent market outlook the chances of this to happen are slim ....BUT need to be taken into consideration.