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Ethereum (ETH) is showing strength, finding support at a critical level around $2,400 and rising to local highs near $2,800. Senior Analyst Ali Martinez shared a technical analysis highlighting the potential for an Ethereum hack. Holding this key level indicates that ETH could be on the verge of a major rally.
Martinez’s analysis indicates a large trading channel with an upper limit around $6,000, indicating a significant upside if ETH continues to gain momentum.
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As the cryptocurrency market broadly heads toward new highs, Ethereum’s performance has lagged some altcoins. A strong rally above the $2,700 level could build momentum for Ethereum to attract renewed interest, especially from institutional and longer-term investors.
Investors are watching to see if it can finally catch up with the broader market’s gains. If Ethereum maintains its position and continues to rise, the expected rally could cement its position as a leading asset in the next major cryptocurrency rally.
Ethereum accumulation is about to end
Ethereum has been consolidated since early August. Some analysts see this as a stage of strategic accumulation by long-term investors before a potential breakout. Ali Martinez highlights this point of view in his technical analysis of XSharing a chart showing Ethereum trading within the channel.
According to Martinez, this continued consolidation around $2,400 indicates an accumulation phase, putting ETH into a strong rally if it breaks out of its current range.
Martinez points to the critical support level of $2,400 as a basis for pushing Ethereum towards the upper limit of the channel at around $6,000. However, such a move would require ETH to first break through the $2,800 level, confirming a shift from the consolidation phase.
If Ethereum price closes above this level, a breakout will signal a reversal and indicate a new upward trend.
This potential rally is in line with broader market trends, as other altcoins and Bitcoin head towards new highs. Analysts believe this could create a domino effect, attracting capital into Ethereum as investors look for upside assets with established use cases and network activity.
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If Ethereum can hold above $2,800 and build momentum, the move could validate Martinez’s $6,000 target. Investors are watching that the hack may signal a phase of accelerated growth for the second-largest cryptocurrency by market capitalization.
ETH tests critical supply level
Ethereum (ETH) is trading at $2,680, just 3.5% away from the 200-day Exponential Moving Average (EMA) of $2,776. This EMA level acts as an important resistance point, and for the bulls to take control, ETH must break above it and then hold this level as support to confirm the uptrend.
A break above the $2,820 supply level would reinforce the bullish momentum and set the stage for a potential breakout.
However, ETH may spend several days trading below these crucial levels before a decisive move is made. Market conditions could favor a period of consolidation, allowing ETH to gather further strength and upside.
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A correction is likely if ETH fails to sustain prices above the 200-day moving average and $2,820 supply zone. In this scenario, Ethereum would likely seek support around lower demand levels, particularly near $2,500, where it could stabilize.
If ETH maintains this support, the consolidation may continue within the range. Investors and traders are closely monitoring these levels to gauge the next direction for ETH at this critical stage.
Featured image by Dall-E, chart from TradingView