As a seasoned crypto investor with a knack for recognizing patterns and a penchant for spotting potential gains, I find the analysis by Ali Martinez particularly intriguing. The Ascending Channel pattern on Ethereum’s weekly price chart is reminiscent of the ’90s NASDAQ charts I used to watch as a stock market enthusiast before the dot-com bubble burst.
Based on the Ascending Parallel Channel observed in Ethereum‘s weekly price trend, this analyst has set both mid-term and long-term goals for the cryptocurrency.
Ethereum Has Been Traveling Inside An Ascending Channel For A While Now
As a researcher delving into the cryptocurrency realm, I’ve recently taken a closer look at Ethereum (ETH) and identified an intriguing trend emerging in its weekly price chart – the Ascending Channel, a variant of the Parallel Channel as per technical analysis. This pattern could potentially provide insights into ETH’s future trajectory.
A Parallel Channel represents a graphical pattern where an asset’s price moves between two trend lines that run parallel to each other. These trend lines are formed by connecting peaks (upper line) and troughs (lower line).
As a researcher studying the behavior of coins within channels, I’ve noticed that when a coin is situated within the channel, it tends to encounter resistance at its previous high point (the former level) and find support at its lowest point (the latter). A breach of either of these boundaries could suggest a continuation of the existing trend in that direction.
In simpler terms, the typical Parallel Channel runs parallel to the timeline, but if it doesn’t, it could be either an Ascending Channel or a Descending Channel. The Ascending Channel features trendlines that slope upward, while the Descending Channel has a downward slope.
In simpler terms, these patterns represent accumulations or increases (upside) and decreases or liquidations (downside). Lately, Ethereum has found itself within one of these patterns, as suggested by the weekly price chart presented by the analyst.
From the graph provided, it’s clear that Ethereum’s weekly price has been contained within an Ascending Channel for several years. This year, the asset touched the lower boundary of this pattern but managed to find support there, leading to a significant upward price surge.
Currently, the Ethereum coin is roughly midway through its journey within the channel, implying there’s still quite a bit of distance to cover before revisiting the upper threshold. Nevertheless, it may encounter resistance at this stage. As per Martinez’s observation, if Ethereum $ETH encounters a downturn, pay attention to the $3,300 support level as a potential buying opportunity.
Previously, Ethereum surpassed the middle point of its channel during the initial three months of the year, reaching the top level. If Ethereum manages to conquer this hurdle again, there’s a chance we might see another strong upward trend like before.
The analyst states that our intermediate goal is still set at $6,000, with a future perspective of reaching $10,000. If we consider the current price, a possible rise up to the initial target would mean a jump of approximately 62%, while a climb towards the second one would equate to a significant increase of 170%.
ETH Price
At the time of writing, Ethereum is trading at around $3,700, up almost 8% over the last week.
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2024-12-05 11:47