Ethereum started to show signs of life after weeks of moderate price action, but one analyst believes the current move is just the the start of something much bigger. This trend is based on a technical setup built around a hidden inefficiency zone after the Ethereum price recently surpassed $4,500.
Technical analysis shows that the unfilled gap could be the first step point in a rally that eventually pushes the five-digit ETH price above $10,000.
The FVG area now acts like a magnet
Technical analysis carried out by crypto analyst Crypto Patel traced a path to where the price of Ethereum starts from here. However, the most important part of the analysis is a Fair Value Gap (FVG) zone that could trigger the next alternate season. This FVG, which sits between $2,475 and $2,634, was formed during the Ethereum outage earlier in the year, leaving behind an imbalance that the price has yet to revisit.
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In technical analysis, these inefficiencies and gaps tend to act like magnets, especially when prices begin to rally with momentum. Ethereum is expected to will try to fill this area before any major rejection.
Ethereum’s recent recovery above $2,300 and surge up to $2,415 puts it within striking distance of FVG, and there is now a high probability that it could fill it to reach $2,634 in the coming days.
Ethereum Price Chart. Source: @CryptoPatel on X
The road to $10,000
The entire bullish argument hinges on the strength of the $1,750 support zone. This level held up during the recent sell-off and formed the basis of the current rally. Ethereum now appears to be slowly turning bullish, and the the future structure is defined in three distinct layers. The first is to recover the FVG.
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The second layer is the bearish order block between $2,900 and $3,035. This is where a significant sell-off occurred in early February, which turned what had been support of a symmetrical triangle into resistance. A sharp breakout above this order block would invalidate the lower upper trend seen on the chart above and extend into a broader uptrend. According to the analyst, this is the level that could confirm the start of a broader altcoin rally, and not just an Ethereum recovery.
However, failure at this level keeps the current structure intact. The worst case scenario is a rejection at $3,035 which sends the ETH price back to between $2,000 and $1,500. This reminds us that the bullish scenario is not guaranteed. A confirmed breakout above $3,035 would, however, turn the entire momentum into a bullish one, and long-term bullish projections will start to make sense. According to Crypto Patel, the long-term target for Ethereum price in this case is a breakout above $10,000.
Featured image created with Dall.E, chart from Tradingview.com
