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 it stands, recent market moves have seen Ethereum retest the lower trendline of this ascending channel, which could make or break its performance in the months to come.
The current ascending channel offers promising prospects and a projection of a rally towards the upper boundary of the channel, with a price target near $6,000. However, for Ethereum to capitalize on this upward dynamicbulls will need to vigorously defend the lower trendline against bearish pressure.
It is important to maintain this level of support
At the time of writing, Ethereum is trading around $2,470, following a decline of around 6.2% over the past 24 hours. Notably, this drop allowed Ethereum to move closer to the critical lower trendline. This recent drop also caught the attention of crypto analyst Ali Martinez, who highlighted the importance of the $2,400 support level as a critical area to watch in the days to come.
Martinez points out that Ethereum’s current position at $2,400 represents a major support zone within its ascending channel. If this level holds, it could serve as a fundamental price floor, allowing Ethereum to rebound and continue to form higher highs along an upward trajectory.
Martinez predicts that with sufficient support at $2,400, Ethereum could rally towards a target of $6,000. Such a move would mark a breakout above Ethereum’s current all-time high and a 150% increase from the current support zone, signaling a strong bullish phase if the bulls successfully defend this key level.
However, if Ethereum bulls fail to sustain above this level, it could lead to further declines. In such a scenario, Martinez 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 pointed out that Ethereum now it seems ready for a much-anticipated gathering. Marks identifies key upside targets at $4,000, $4,811, and $8,400, representing potential gains of 61%, 94%, and 240% from Ethereum’s current price.
Reaching these milestones could not only propel Ethereum’s price, but also spark rallies in other altcoins, essentially triggering the altcoin phase in this market cycle.
Ethereum’s journey to these ambitious price levels and its ability to challenge Bitcoin Market dominance will be closely linked to the activity of large-scale investors, often called 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 spike in activity suggests that large holders started accumulating Ethereumwhich could serve as a solid basis for the expected rise in prices.
Featured image from Pexels, chart from TradingView
