Analyst Predicts Ethereum Could Reach $6,000 Based on Ascending Channel Pattern
An analyst has recently discussed a potential pattern in Ethereum’s price that could lead to a rally towards the $6,000 mark. The pattern in question is the “Ascending Channel” from technical analysis.
Ethereum’s Ascending Channel Pattern
In a recent post on X, analyst Ali Martinez highlighted the Ascending Channel pattern that Ethereum has been following. Ascending Channels form when the price of an asset consolidates between two parallel trendlines, with the upper line connecting successive tops and the lower line joining bottoms.
According to Martinez, if Ethereum dips to the lower boundary of the Ascending Channel at $2,800, it could act as a launchpad for a potential move towards $6,000. This scenario is based on historical price movements within the pattern.
Chart Analysis
The chart shared by the analyst shows Ethereum trading within the Ascending Channel over the past few years. The cryptocurrency retested the upper level of the channel during a rally in the first quarter of last year but faced rejection, leading to a downward trajectory. A subsequent retest of the lower line resulted in a rebound and a rally that fell short of reaching the upper level.
A similar pattern was observed in 2023, where a rejection halfway through the channel led to a retest of the bottom line, kickstarting a bull run. Martinez suggests that a similar trajectory could lead Ethereum to a potential rally towards $6,000 from its current price of around $3,300.
ETH Price Analysis
Currently, Ethereum has been struggling to recover from its recent plunge, with the price hovering around $3,300. The price chart indicates a downward trend over the past few days, but the potential for a bullish rally towards $6,000 remains if the Ascending Channel pattern holds true.
Overall, the analysis suggests that Ethereum could experience significant growth if it follows the Ascending Channel pattern, with a potential target of $6,000 representing an 82% increase from the current price.
For more updates on Ethereum’s price movements and technical analysis, stay tuned for further insights.