Ethereum has been a pretty darn remarkable investment. I've not seen anyone charting its all time price action in a channel, using weekly candles, yet I'm pretty certain the market makers take this longer term view to things. Adding a 21 EMA to the weekly candle chart tells a telling picture of strong support along with market maker buying activity right where we are today. Couple that with the 50% median line running through the channel which has proven to be strong support in the recent months, then on balance of probabilities we can anticipate a strong move upwards from here through the rest of the year, while keeping an eye on these two levels of support presently just below ETH price action today.
Happy investing everyone!
Love AND Peace BiTBOi
PS: Its worth noting that the only time the 21 EMA has failed in Ethereum's history was when ETH, like a horse to water, grew impatient to reach the bottom of the channel, ran down through the 21 EMA and then convincingly blasted up through the 21 EMA to begin this present bullish run. This gives additional confirmation to the key level of significance that the 21 EMA has on the weekly candle chart for Ethereum.
This is a great chart, but for the trend channel to remain valid, we should see the price hit the bottom of the channel and bounce off - so a healthy long term move would see ETH come down to around $300....
BitBoy
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@joasia, yeah I do agree with you. You have pointed out a legit risk of sideways to downwards price action. On balance of probabilities, seeing that ETH has used this 50% line as support since May 2017, along with the 21 EMA on weekly chart, it's likely to continue up given the extent of the overall market retracement over the past couple of months, even so, you are right, we need to be aware of the risks, and know that if we do see upwards price action, it may not be as explosive as it was in early 2017. Thanks for the good commentary!