Over time, the price of Ethereum has trended sideways with no definitive movement in either direction. This trend has led to the formation of an ascending channel that could change the course of things for the second largest cryptocurrency by market capitalization. If this trend continues to occur, then it is possible that the price of Ethereum could be poised to reach new all-time highs.
Why Ethereum Price Could Surpass $5,000
Crypto analyst Jonathan Carter shared an analysis on website X (formerly Twitter) that examines the price of Ethereum and what the current trend could mean for the altcoin. Carter highlighted the current ascending channel trend, but also what this could mean for the price of Ethereum in the future.
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According to the crypto analyst, Ethereum price is currently trading closer to the lower boundary of the ascending channel pattern. This is taken from the weekly chart, and since the altcoin price has not yet fallen below this channel, it is still very bullish.
For now, Ethereum’s prognosis remains that the price will begin to rise, provided a few things remain. The first is the fact that the canal structure is still intact. This suggests that bulls are likely to push prices higher.
Then there is the fact that the support zone around the $1,900 level is still held. As long as this support holds, the bears cannot continue to push prices lower. But failing to reach this level would cause Ethereum prices to fall.
The last of these is that bullish momentum continues to build around Ethereum. During periods of sideways movement like this, it is often when whales accumulate and as a result, bullish momentum around the asset begins to increase.
With all the catalysts remaining intact, the crypto analyst predicts that there are five (5) recovery targets for the Ethereum price in total. The first of the targets is $2,350, which represents a jump of about 15% from the current level. Once this target is exceeded, the bulls move on to the second target, at $2,800.
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The next recovery target then moves to $3,550, finally breaking resistance at $3,000. This gives way to the target of $4,700. Reaching this target will set the stage for Ethereum price to actually retest its current all-time high of $4,900 and then play into the final target.
This final target is set at $5,700, which would set a new high for Ethereum price. However, all of this still depends on the ascending channel pattern remaining and the price not falling below the established support.
Featured image of Dall.E, chart by TradingView.com
