One analyst explained how Ethereum could see a trend towards the $6,000 level if this historical pattern continues to hold for the asset’s price.
Ethereum’s bullish channel may reveal its next destination
In new mail On X, analyst Ali Martinez discussed the pattern that Ethereum’s one-week price is likely to follow over the past two years.
The pattern in question is the “Ascending Channel” of Technical Analysis (TA), which is a type of parallel channel. In a parallel channel, the asset is consolidating between two parallel trend lines, with the upper level connecting successive highs and lower lows.
These two levels slope upward in the case of a bullish channel, as already hinted by its name. Therefore, an upward channel is only formed when the asset sets higher highs and lower lows.
The lower level of the pattern can support the price, while the upper level may act as resistance. If any of these levels are broken, the asset may see a continuation of the trend in that direction; A rise above the upper line can be a bullish sign, while a fall below the lower line can herald a bearish outcome.
There is also another type of parallel channel, called a down channel, which works in the same way as an up channel, except for the fact that it points down.
Now, here is the chart Martinez shared that shows the bullish channel that the one-week Ethereum price can be traded within right now:
As shown in the chart above, the 1-week Ethereum price recently retested the lower level of a potential ascending channel pattern. The analyst highlighted what has happened the last few times the coin has retested this line.
“Each bounce off the low of this channel has historically led to an average Ethereum price rise of 130%,” Martinez notes. Therefore, if the upward channel continues to hold for the cryptocurrency, it may benefit from another rally soon
“If this pattern holds, a similar move could push ETH to $6,000 – provided the $2,300 support level remains intact,” the analyst says. This support level naturally corresponds to the channel minimum, and a drop beyond it would likely invalidate this formation.
Given this pattern forming on the weekly chart, it remains to be seen how the Ethereum price will develop in the coming months.
Ethereum price
Ethereum enjoyed a sharp 7% rise over the past 24 hours, pushing its price above the $2,600 mark.
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