Hello Traders ๐บ
In this idea, I want to show you one of the coolest charts Iโve ever seen in my life โ seriously!
These kinds of patterns, especially on the monthly time frame, take multiple years to form, and thatโs exactly why they are extremely valid. When a structure develops on higher time frames, we can rely on it more confidently and make smarter decisions ๐
As you can see on the chart, ETH price is moving inside a very clear ascending channel, and its reactions to the channel lines are simply beautiful. Letโs take a closer look:
In addition to the top and bottom of the channel, we also have a โmake or breakโ level, shown by the blue dotted line (which is the middle line of the channel).
Price reactions to this line throughout different time periods have been amazing. And here's the more interesting part:
๐ Price is currently above the middle line, and on its way up, itโs approaching one of the most critical resistance levels โ the orange descending trendline.
If we zoom out, weโll see that ETH is actually squeezed between this descending resistance and the ascending channel's middle line, forming a beautiful triangle ๐บ
If ETH can break above this triangle, we could see a massive surge, possibly taking price all the way up to the top of the channel, which in my opinion is somewhere around $15,000 ๐
Now letโs talk about RSI:
If you take a closer look at the RSI below the chart, youโll notice a repetitive pattern.
Each time ETH enters a major bull run or makes a new all-time high, RSI touches the upper resistance in the overbought zone.
Weโre still in the early stage of this cycle โ and both technically and indicator-wise, there seems to be plenty of room to grow.
Hope you enjoy this idea โ Iโll be happy to answer your questions in the comments below ๐
And as always, remember our golden rule:
๐บ Discipline is rarely enjoyable, but almost always profitable ๐บ