Technical analysis of Ethereum price trend reveals that it is trading within two price channels;
First; larger channel caging the price for several months
Second; smaller channel, caging the price for several weeks
As soon as the price reaches the lower boundary of either of the channels, it faces an upward bounce. Conversely, ether price is hammered downward when it reaches the upper boundary of either of the channels.
In the recent crypto bullish trend, ethereum has also shown a good price rally but for the time being it has hit the upper boundary of 2nd channel. How will it behave next?
There are 2 scenarios;
Contents
Case 1: Be Channeled
If the price gets rejected from the upper channel line, it will slide downwards to the lower channel boundary. In this case Downside target lies around $1360, from where the lower boundary line of both channels will provide it bounce again.
For the medium term, a downtrend will be observed.
Case 2: Upside Breakout of Small Channel
On breaking the smaller channel upward, Ethereum price will move toward the upper boundary of the bigger channel. So the immediate target for Ethereum will be $2262.
For the time being, the next price action will be determined by price behavior towards the smaller price channel.
Will it break the channel?
Momentum speaks yes. Volume analysis of the current upward rally reveals that trading volume is considerably greater than the previous downward move. Further, volume is increasing as the trend is proceeding. So the momentum is favoring the upside breakout of the current smaller price channel.
End Note:
Technical analysis of ethereum price reveals that it is caged inside two price channels with the price hitting the upper boundary of the smaller price channel. If it fails to break the smaller channel upwards, the price will visit the lower boundary of the channel which lies at $1360. On the other hand, if the ether price breaks the upper boundary of the smaller channel, it will go to the upper boundary of the bigger channel which lies at $2262. The current move is pivotal for the upcoming ether price trend.
