Ethereum’s Mid-Term and Long-Term Targets Based on an Ascending Parallel Channel
Ethereum Has Been Traveling Inside an Ascending Channel for a While Now
An analyst, Ali Martinez, has published a post on X discussing Ethereum’s potential future price movement based on a pattern forming in its weekly price chart. The pattern is an Ascending Channel, a type of Parallel Channel in technical analysis.
Understanding the Ascending Channel
A Parallel Channel is a chart pattern characterized by two parallel trendlines between which the price of the asset consolidates. The upper line of the pattern is created by joining together successive tops, while the lower one connects bottoms.
When the price of the asset is inside the channel, it is likely to feel resistance at the upper level and support at the lower level. A breakout of either of these lines can imply a continuation of the trend in that direction.
The Ascending Channel Pattern
The Ascending Channel pattern is a type of Parallel Channel where the parallel trendlines slope upwards. This pattern captures consolidations towards the upside.
Ethereum’s Current Situation
Ethereum has been moving inside an Ascending Channel for a couple of years now. The asset retested the lower level of the pattern earlier in the year and successfully found support at it, resulting in a sharp bullish rebound.
Currently, the coin is about halfway through the channel, leaving plenty of distance to go before a retest of the upper level. However, the asset can still find resistance at the upper level.
Mid-Term and Long-Term Targets
According to the analyst, the mid-term target for Ethereum remains at $6,000, with a long-term outlook of $10,000. From the current price of around $3,700, a potential surge to the first target would imply an increase of 62%, while that to the second target would be 170%.
Conclusion
Ethereum’s Ascending Channel pattern provides a potential roadmap for the cryptocurrency’s future price movement. If the asset can overcome the current resistance and retest the upper level of the channel, it may witness a similar rally to the one seen earlier this year.
FAQs
Q: What is the Ascending Channel pattern?
A: The Ascending Channel pattern is a type of Parallel Channel in technical analysis where the parallel trendlines slope upwards, capturing consolidations towards the upside.
Q: What is the current situation of Ethereum in the Ascending Channel?
A: Ethereum is currently about halfway through the channel, leaving plenty of distance to go before a retest of the upper level.
Q: What are the mid-term and long-term targets for Ethereum?
A: The mid-term target remains at $6,000, with a long-term outlook of $10,000.
Q: How much increase would a potential surge to the first and second targets imply?
A: A potential surge to the first target of $6,000 would imply an increase of 62%, while that to the second target of $10,000 would be 170%.
