With the growing momentum in the market at large, several major crypto assets like Ethereum have been moving in an upward direction. Therefore, optimism about ETH Witnessing a short-term rally has increased significantly among crypto enthusiasts, attributing this highly anticipated development to past cycle trends.
Major rally for Ethereum expected in January
As the new year begins, market expert and Ether trader Naysonal took a look at the recent price action of Ethereum, highlighting a bullish outlook. After looking at ETH’s performance over a monthly period, the expert pointed out that the altcoin could be preparing for a significant price rise in January.
Ether Naysonal made bold predictions, citing historical price trends indicating a bullish month for ETH. The expert emphasizes that Ethereum has already demonstrated positive momentum during the month during similar market cycles, with a sustained upward trajectory interspersed with notable rallies.
As ETH approaches critical levels, Naysonal believes this bullish strength could indicate an upcoming parabolic run in January. Drawing attention to past trends, Ethereum began its parabolic rise in January 2021 after a successful retest in December 2020.
It is worth noting that this development sparked a huge rally for ETH, reaching a new absolute record and market top in the 2021 cycle. With the monthly chart reflecting the same pattern, Naysonal suggests that a similar price rally would start during the month, possibly up to the $9,500 level.
If past trends repeat themselves, the $9,500 mark could prove to be the top of this market cycle. At the same time, market observers are monitoring several trends and indicators in order to gauge ETH’s next trajectory as the bull cycle continues.
ETH’s Path to $6,000 Still Intact
Looking at the performance of ETH, Ali Martinez, technical and on-chain analyst, predicted a push towards a new all-time high at the $6,000 level. His prediction comes as the altcoin faces increased volatility, slowing the long-awaited rally.
Ethereum’s path towards the $6,000 mark is supported by an ascending parallel channel formation, a key pattern that indicates upward momentum. An ascending parallel channel is bullish price action contained in two upward sloping parallel lines characterized by higher highs and higher lows.
It is important to note that Ethereum has been moving in the ascending parallel channel since 2022, with each bounce from the lower boundary leading to a notable increase. According to Ali Martinez, ETH continues to remain in the critical chart pattern despite the volatility. As a result, he foresees a move towards the $6,000 mark in the short term.
At the time of writing, ETH was trading at $3,668, slowly inching closer to $3,700 with a 1% increase in the last 24 hours. Investor sentiment has weakened, as indicated by a trading volume of just 0.15% over the past day.
Featured image from Unsplash, chart from Tradingview.com
