Earlier this week we wrote how the price of Ethereum engaged in a mega breakout right after it crossed the triple top price level of $400. That was for us the trigger which confirmed our long-standing price targets: target of $550 still in 2017 and our longer term target of $1000 (before 2020). InvestingHaven’s research team noticed something very interesting after this week’s breakout: a trend channel that is developing on Ethereum’s price chart, and it resulted in a series of Ethereum price predictions.

Trend channels are the most powerful way to forecast future price direction on a chart. This is not technical analysis, it is chart analysis. Could look similar, but it IS different and sounds different as well.

Chart analysis is as relevant as it can be in the cryptocurrencies space. Many think that cryptocurrencies behave differently. We would say that the difference between cryptocurrencies and traditional investments is the rate of change (in other words, how fast they behave), certainly not HOW they behave.

Let us focus on what we noticed on Ethereum’s chart.

Ethereum price predictions based on old-school chart analysis

Ethereum was left behind in recent months compared to Bitcoin. Note that Bitcoin has almost tripled since Ethereum peaked in May/June of this year.

It is clear that Ethereum and many other altcoins have to catch up with Bitcoin now. Visibly, that is happening right now.

Cryptocurrencies typically rise sharply in a very short period of time. We expect Ethereum to pick up steam any time soon, with an acceleration that could bring it significantly higher for a couple of days, only to come back sharply again and test the 400 USD level (its breakout point).

The chart below is the one which shows the trend we notice. Given that Ethereum is moving outside of its $150 to $400 range, with this weeks breakout, we see that a rising channel is at play, the one indicated with the blue annotated lines.

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