Understanding the Ethereum Channel

The Ethereum channel is created using the 21W exponential moving average combined with a diminishing factor to reflect the lowering volatility with time. This channel provides a range within which the Ethereum price tends to fluctuate over medium to long-term periods.

Historically, when Ethereum nears the upper channel line, it indicates increased market risk, often leading to a subsequent pullback. Alternatively, the lower channel line signifies robust macro support for Ethereum's price.