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The analyst revealed what could happen for Ethereum to reach $6,000, based on its price pattern currently emerging.
Recently, Ethereum seemed to be moving in a rising channel
In the fresh one post on X, analyst Ali Martinez discussed the pattern Ethereum has potentially been following lately. The formation in question is the “Ascending Channel” of technical analysis (TA).
Parallel channels are created when the price of an asset consolidates between two parallel trend lines. The upper level of the channel is drawn by connecting subsequent vertices, while the lower level connects the bottoms.
This pattern can take three orientations: positive slope, negative slope, and zero slope. In the first one, the trend lines follow a consolidation phase towards the bullish direction, and the pattern is known as an ascending channel. Similarly, in the second case, the price has a downward trend and the formation is called a descending channel. The third type, in which the trend lines are parallel to the timeline, has no specific name.
Like other consolidation patterns in TA, the upper line of the parallel channel will likely act as resistance for price, while the lower line may act as a support point. Breakouts above any of these lines may indicate a continuation of the trend in that direction; a break above the channel is bullish and a drop below it is bearish.
Here is a chart shared by an analyst that shows the ascending channel where Ethereum has likely been traded over the last few years:
As you can see in the chart above, Ethereum price again tested the upper level of this channel during the rally in the first quarter of last year. The cryptocurrency faced rejection at this level and began a downward trajectory that ultimately forced it to retest the bottom line.
ETH spent some time touching the line multiple times during the retest, but the pattern eventually held as the coin achieved a bounce. The resulting boost couldn’t push the price higher, however, as it actually expired only halfway through the trip. Since then, the value of this asset has been sinking.
Interestingly, a similar pattern was also observed in 2023, when a mid-channel rejection led Ethereum to retest its bottom line, sparking a bull market.
In the chart, Martinez highlighted what the upcoming ETH price trend could look like if a similar trajectory continues now. “If Ethereum $ETH follows an ascending parallel channel, a drop to the lower boundary at $2,800 could serve as a trigger for a move towards $6,000,” the analyst notes.
From the cryptocurrency’s current price, a bull run to the final target of $6,000 would represent an boost of almost 82%.
ETH price
Ethereum has yet to make a noticeable recovery from its recent decline as its price continues to hover around $3,300.
Featured image from Dall-E, charts from TradingView.com