Ethereum Sets Sights On $6,000 Target, But Holding This Critical Support Level Could Be The Key

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. Currently, recent market movements have seen Ethereum retest the lower trend line of this ascending channel, which could make or break its performance in the coming months.

The current up channel offers a promising outlook and outlook for a rise towards the upper border of the channel, with a price target near $6,000. However, for Ethereum to benefit On this upward momentumThe bulls will need to defend the lower trend line aggressively against downward pressure.

Maintaining this level of support is important

At the time of writing, Ethereum is trading at around $2,470, having fallen by around 6.2% over the past 24 hours. Notably, this decline brought Ethereum close to the critical lower trend line. This latest decline has also caught the attention of cryptocurrency analyst Ali Martinez, who… Highlight The importance of the $2,400 support level as a critical area to watch in the coming days.

Martinez emphasizes that Ethereum’s current position at $2,400 represents a major support area within its ascending channel. If this level holds, it could serve as a key price floor, enabling Ethereum to bounce back and continue to form higher highs along an upward trajectory.

Martinez predicts that with enough support at $2,400, Ethereum could rise towards the $6,000 target. Such a move would represent a breakout above the current all-time high for Ethereum and a 150% increase from the current support area, indicating a strong bullish phase if the bulls succeed in defending this key level.

However, if Ethereum bulls fail to hold above this level, it could head towards 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.

Looks like Ethereum is ready

In another technical analysis of Ethereum’s price movement, cryptocurrency analyst Javon Marks highlighted that Ethereum It now looks ready For the long-awaited gathering. Marks sets key upside targets at $4,000, $4,811, and $8,400, representing potential gains of 61%, 94%, and 240% from Ethereum’s current price.

Achieving these milestones could not only propel the price of Ethereum, but also ignite rallies in other altcoins, essentially triggering the altcoin phase of this market cycle.

Ethereum’s journey towards these ambitious price levels and its characteristics The ability to challenge Bitcoin Market dominance will be closely linked to the activity of large-scale investors, often referred to as whales.

Recent data from the on-chain analytics platform Santiment reveals a significant increase In Ethereum whale activity, it reached a six-week high on Friday. This increase in activity indicates that large holders I started accumulating Ethereumwhich can serve as a strong basis for the expected price rise.

Featured image from Pexels, chart from TradingView