Technical analysis shows that Ethereum has been trading in an ascending channel pattern since July 2023, largely with a series of higher highs and higher lows. As things stand, recent market moves have seen Ethereum retest the lower trendline of this ascending channel, which could make or break its performance in the coming months.
The current ascending channel offers a promising outlook and a projection of a rally towards the upper boundary of the channel, with a price target close to $6,000. However, for Ethereum to capitalize in this upward momentumbulls will have to vigorously defend the lower trend line against bearish pressure.
Maintaining this level of support is important
At the time of writing, Ethereum is trading around $2,470, having declined by approximately 6.2% in the last 24 hours. Notably, this decline has seen Ethereum approach the critical lower trend line. This recent drop has also caught the attention of cryptanalyst Ali Martínez, who highlighted the importance of the $2,400 support level as a critical zone to monitor in the coming days.
Martínez emphasizes that Ethereum’s current position at $2,400 represents an important support area within its ascending channel. If this level holds, it could serve as a fundamental price bottom, allowing Ethereum to recover and continue forming higher highs along a bullish trajectory.
Martínez projects that, with sufficient support at $2,400, Ethereum could rally towards a target of $6,000. Such a move would mark a break above Ethereum’s current all-time high and a 150% rise from the current support zone, signaling a strong bullish phase if the bulls successfully defend this key level.
However, if Ethereum bulls failed to hold above this level, it could lead to further declines. In such a scenario, Martínez suggests setting a stop loss between $2,300 and $2,150 to maintain a favorable risk-reward ratio.
Ethereum looks ready
In another technical analysis of Ethereum price action, crypto analyst Javon Marks highlighted that Ethereum now it looks ready for a long-awaited demonstration. Marks identifies key bullish targets at $4,000, $4,811, and $8,400, representing potential gains of 61%, 94%, and 240% from the current Ethereum price.
Achieving these milestones could not only boost Ethereum’s price but also spark rallies in other altcoins, essentially fueling the altcoin phase of this market cycle.
Ethereum’s journey towards these ambitious price levels and its ability to challenge Bitcoin Market dominance will be closely linked to the activity of large-scale investors, often referred to as whales.
Recent data from on-chain analytics platform Santiment reveals a significant increase in Ethereum whale activity, hitting a six-week high on Friday. This increase in activity suggests that large holders have started accumulating Ethereumwhich could serve as a solid foundation for the expected price rally.
Featured image from Pexels, chart from TradingView
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