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Ethereum (ETH) is showing strength, finding support at a critical level around $2,400 and reaching local highs near $2,800. Analyst Ali Martinez shared technical analysis highlighting Ethereum’s breakout potential. Holding this key level suggests that ETH could be poised for a significant rally.
Martinez’s analysis indicates a wide trading channel with an upper limit of around $6,000, indicating substantial upside potential if ETH continues to gain momentum.
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While the crypto market overall is trending towards new highs, Ethereum’s performance is lagging behind that of some altcoins. A strong push beyond $2,700 could give Ethereum further momentum to garner renewed interest, especially from institutional and long-term investors.
Investors are waiting to see if it can finally catch up with the broader market’s gains. If Ethereum holds strong and continues its rise, the expected rise could solidify its position as a leading asset during the next major crypto rally.
Ethereum accumulation is about to end
Ethereum has been consolidating since the beginning of August. Some analysts see it as a phase of strategic accumulation by long-term investors before a possible breakout. Ali Martinez highlights this view in his technical analysis on X, sharing a chart showing Ethereum trading within a channel.
According to Martinez, this ongoing consolidation around $2,400 suggests an accumulation phase, positioning ETH for a strong surge if it breaks out of its current range.
Martinez highlights the critical support level of $2,400 as the basis for propelling Ethereum towards the upper boundary of the channel at around $6,000. Such a move would, however, require ETH to first cross the $2,800 level, thus confirming the exit from its consolidation phase.
If Ethereum price closes above this level, the breakout would mark a reversal and signal a new uptrend.
This potential rally aligns with broader market trends, as other altcoins and Bitcoin head toward new highs. Analysts believe this could create a domino effect, attracting capital to ETH as investors seek high-growth assets with established use cases and network activity.
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If Ethereum can hold above $2,800 and build momentum, this move could validate Martinez’s $6,000 target. Investors are observing that a breakout could signal a phase of exponential growth for the second-largest cryptocurrency by market capitalization.
Critical ETH Testing Supply Level
Ethereum (ETH) is trading at $2,680, just 3.5% off its 200-day exponential moving average (EMA) at $2,776. This EMA level acts as an important resistance point, and for bulls to take control, ETH must break above it and then hold this level as support to confirm an uptrend.
A push above the $2,820 bid level would further strengthen the bullish momentum and set the stage for a potential breakout.
However, ETH could spend several days trading below these crucial levels before a decisive move occurs. Market conditions could favor a period of consolidation, allowing ETH to strengthen and move higher.
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A retracement is likely if ETH fails to sustain prices above the 200-day EMA and the $2,820 supply zone. In this scenario, ETH would potentially seek support around lower demand levels, notably near $2,500, where it could stabilize.
If ETH holds this support, consolidation within a certain range could continue. Investors and traders are closely watching these levels to gauge ETH’s next direction in this critical phase.
Featured image of Dall-E, chart by TradingView
