One analyst placed these mid- to long-term targets for Ethereum based on an ascending parallel channel that has formed in its weekly price.
Ethereum has been traveling in an ascending channel for some time now
In a new article on X, analyst Ali Martinez discussed the direction ETH could take based on a trend forming in its weekly price chart. The pattern in question is the ascending channel from technical analysis, which is a type of parallel channel.
A parallel channel is made up of two parallel trend lines between which the price of the asset consolidates. The top line of the pattern is created by joining successive tops, while the bottom line connects the bottoms.
When the coin is inside the channel, it is likely to feel resistance at the first level and support at the second. A breakout of either of these lines may imply a continuation of the trend in that direction.
The usual parallel channel is also parallel to the time axis. Otherwise, it is either an ascending channel or a descending channel. As their names already suggest, the former involves parallel trend lines that are ascending, while the latter involves descending.
This means that these models capture upward and downward consolidations, respectively. Ethereum has been stuck in such a pattern recently, as highlighted by the cryptocurrency’s 1-week price chart shared by the analyst.
As the chart above shows, the weekly price of Ethereum has been moving in an ascending channel for a few years now. The asset retested the lower level of the trend earlier in the year and managed to find support there, thanks to which its price was able to experience a strong bullish rebound.
The room is now about halfway across the canal, meaning there’s still a long way to go before retesting the upper level. However, the asset may still find resistance here. “If #Ethereum $ETH experiences a pullback, keep an eye on the $3,300 support level – a potential buying opportunity,” notes Martinez.
The last time ETH rose above the midpoint of the channel was in the first quarter of the year when the coin reached the upper level. So, if Ethereum manages to overcome this challenge, it is possible that it will witness a similar rally this time as well.
“Our medium-term goal remains $6,000, with a long-term outlook of $10,000! explains the analyst. At current prices, a potential increase towards the first of these targets would imply an increase of 62%, while that towards the second would be 170%.
ETH Price
At the time of writing, Ethereum is trading at around $3,700, up almost 8% from last week.
