Price action of Ethereum (ETHUSD) from ~$394.06 on April 09, 2018 to present date has been captured in this analysis in a bullish price channel.
The price channel is achieved by drawing the main trend line (in blue) along price lows and then placing the parallel to that line above the price high (~$528.36) made on April 13, 2018 (black line).
The green arrows in this analysis show a possible trajectory for further development in the price action of Ethereum. Support as drawn on the chart is between ~$574.66 and ~$556.10. The upper line for the support area coincides with the main trendline, thus increasing the potential of Ethereum finding support around the support region.
Any further bullish action in the case of a sell off to the support area would be expected to target the upper end of the channel which has been estimated in this analysis to be between ~$689.40 and $702.90.
Point of invalidation of this analysis (POI) is a price close below ~$541.75 at which point Ethereum would have not only broken through support, but also its 4hr tf main trendline (in blue).
Assuming an ideal scenario where Ethereum reaches and holds in the support region, risk on the trade = $574.66 (upper region of support) - $541.75 (POI) = $32.91.
Reward = $689.40 (bottom of the target area) – Point of entry ($575) = $114.40
Risk/reward ratio = 114.40/32.91 = ~ 3.5:1
The price channel is achieved by drawing the main trend line (in blue) along price lows and then placing the parallel to that line above the price high (~$528.36) made on April 13, 2018 (black line).
The green arrows in this analysis show a possible trajectory for further development in the price action of Ethereum. Support as drawn on the chart is between ~$574.66 and ~$556.10. The upper line for the support area coincides with the main trendline, thus increasing the potential of Ethereum finding support around the support region.
Any further bullish action in the case of a sell off to the support area would be expected to target the upper end of the channel which has been estimated in this analysis to be between ~$689.40 and $702.90.
Point of invalidation of this analysis (POI) is a price close below ~$541.75 at which point Ethereum would have not only broken through support, but also its 4hr tf main trendline (in blue).
Assuming an ideal scenario where Ethereum reaches and holds in the support region, risk on the trade = $574.66 (upper region of support) - $541.75 (POI) = $32.91.
Reward = $689.40 (bottom of the target area) – Point of entry ($575) = $114.40
Risk/reward ratio = 114.40/32.91 = ~ 3.5:1