Ethereum (ETHUSD) is showing incredible strength at the moment as it broke above its 1W MA50 (blue trend-line) and its goal now will be to close the week above it.
This resembles May 2020 and January 2017 when again the price was struggling to break above its 1W MA50, all within a similar Megaphone pattern, and eventually succeeding. The similarities among those 3 patterns so far are striking despite being formed on different Cycles.
As you can see, we are currently on the 0.618 Fibonacci level of the Megaphone, which is exactly where ETH was during the other 2 Cycles when it tested the 1W MA50 and broke out. Once the 1W MA50 turned into Support, the market never looked back and initiated the parabolic rallies of 2020/ 2021 and 2017.
Based on that, we expect ETH to test the 1.5 Fibonacci extension, around $7000.
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