ETH New ATH – Confluence around $6k

ETH Leading the Charge!

ETH is not in the business of slowing down at the moment!  ETH made a new ATH yesterday and then as soon as today’s candle got started – it made another new ATH.

$4643 at the time of this writing is the current ATH for ETH.  Now the question becomes: Where do we go from here?

Technical Level 1 and 2

During times of Price Discovery, we can look to Fibonacci Extension levels to help technical traders get an idea of where they may want to take profits.  

After a Sizeable move up and down a trader can place fibs and look for potential areas of Support and Resistance.

Two very popular extensions are the 1.618 and the 2.618.  Here we can see the 1.618 and the 2.618 from the previous ATH and the Swing-Fail respectively are in very close proximity to each other.  This whole zone would be popular for profit taking.

Technical Level 3

A Bull Flag is a technical pattern that helps to determine where the price can go based on where it was, to begin with.  For a target to be measured on a Bull Flag, the analyst will measure from the bottom of the pole to the top of the pole.  That measurement (dollar value – not percentage) will then be applied to the area where the price has broken above the flag.

Now this does not give us $6K – more like $5621 ish but it is a sizeable move that can add to the momentum.  A Bull Flag can also be a part of a harmonic and therefore it can help certain patterns reach their price action targets.

The Fundamentals

There are a lot of cats ragging on ETH lately for the extremely high gas fees – and for good reason – it’s absolutely out of control and is putting a hindrance on growth in the ecosystem.  

The BURN is very real my friends.  To make a very long story much shorter – ETH Burn is live and working.  For the first week ever, The Burning of ETH outweighed the Mining of New ETH.  This is absolutely insane as the chain just went from inflationary to deflationary.  Now, all of a sudden, before 2.0 and the London merge, we have Less ETH Every Single Day.

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