ETH/USD 1D Deep Crab Pattern

Idea

ETH/USD is en route to complete a beautiful harmonic reversal pattern known as the “deep crab” on the 1D chart. This is a very “clean” pattern and has been forming for about 6 months now. In addition, there is an even older 0.618/1.618 AB=CD pattern that begins from the lows of this current bull market and is projected to end right where the D point of the “deep crab” pattern ends. Therefore we can surely expect a notable reaction in ETH/USD around these levels.


Price Structure

X: 12 May '21 @ 4380

A: 20 Jul '21 @ 1687

B: 03 Sep '21 @ 4072

C: 21 Sep '21 @ 2598

??? D: 26 Dec '21 @ 5901

Potential Reversal Zone

1.27 AB=CD: @ 5628

D: @ 5901

XAD: @ 6044


Conclusion

Use the red trendline coming from 20 Jul '21 and 21 Sep '21 on the bottom of the pattern (this also coincides with the blue line=21 week exponential moving average) and the red trendline coming from 12 May '21 and 03 Sep '21 as support for the time being if you are long. Although the anticipation for the “deep crab” pattern to complete is on 26 Dec '21, the maximum time of allowance on this would be 16 Mar '22 which is the 1.618 of the time it took for X, A, B to form or 114 days*1.618=194 days. Once the pattern completes it will most likely mark a time for ETH/USD to correct before it continues a final euphoric wave to wherever “YouTube analysts” say it is probably going. Usually the first level to test on the downside will be the 38.2% retracement of points A to D which would be 4291 but I doubt we will get there for more fundamental reasons. A more reasonable retracement would be the most recent high of 4850. Good luck!