If we look at all the major movements in ETH, they fall into 4 general channels of momentum. The 4th channel is already the longest lasting channel, and so it's doubtful to continue with its current momentum. The question is which of the following new channels is most likely? I think horizontal movement (blue) is probably the most likely for a few reasons:
1. It has the most overlap with the previous channel (something that has been a pattern in the past)
2. It follows patterns that BTC has made during similar retracements in its earlier days (Jan - Oct 2015)
3. It allows for both short term bears, and long term bulls theories to be correct. It's unlikely that ETH is about to go parabolic in the next month, and also unlikely that it's going to $6.
1. It has the most overlap with the previous channel (something that has been a pattern in the past)
2. It follows patterns that BTC has made during similar retracements in its earlier days (Jan - Oct 2015)
3. It allows for both short term bears, and long term bulls theories to be correct. It's unlikely that ETH is about to go parabolic in the next month, and also unlikely that it's going to $6.
Trade active:
Still don't think we have reached the top of the channel