Ethereum (ETH) is showing strength, finding support at a critical level near $2,400 and pushing to local highs near $2,800. Top analyst Ali Martinez shared a technical analysis highlighting Ethereum’s breakout potential. Maintaining this key level suggests that ETH may be on the verge of significant growth.

Martinez’s analysis points to a vast trading channel with an upper bound around $6,000, indicating significant upside if ETH continues to gain momentum.

As the cryptocurrency market generally heads towards fresh highs, Ethereum’s performance is lagging behind some altcoins. A robust rally above $2,700 could provide momentum for Ethereum and generate renewed interest, especially from institutional and long-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 grow, the projected growth could solidify its position as a leading asset in the next massive cryptocurrency rally.

Ethereum accumulation will end soon

Ethereum has been consolidating since the beginning of August. Some analysts see this as a strategic accumulation phase by long-term investors ahead of a potential breakout. Ali Martinez highlights this view in his technical analysis of Xby sharing a chart showing Ethereum trading within the channel.

According to Martinez, this ongoing consolidation near $2,400 suggests a bullish phase that positions ETH for a massive upside if it breaks out of its current range.

Martinez points to the critical support level of $2,400 as a basis to push Ethereum towards the upper boundary of the channel at around $6,000. However, such a move would require ETH to first exceed the level of $2,800, which would confirm the exit from the consolidation phase.

If Ethereum price closes above this level, a breakout would represent a reversal and signal a fresh uptrend.

This potential rally fits into broader market trends as other altcoins and Bitcoin pursue fresh highs. Analysts believe this could have a domino effect, driving capital into ETH as investors look for high-yield assets with established operate cases and network activity.

If Ethereum can hold above $2,800 and gain momentum, the move could confirm Martinez’s $6,000 target. Investors are watching how a breakout could signal a phase of exponential growth for the second-largest cryptocurrency by market capitalization.

ETH Testing Critical Supply Level

Ethereum (ETH) is trading at $2,680, just 3.5% off its 200-day exponential moving average (EMA) of $2,776. This EMA level acts as a significant 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 further strengthen bullish momentum and set the stage for a potential breakout.

However, ETH may spend several days trading below these key levels before making a decisive move. Market conditions may support a period of consolidation, allowing ETH to gather more strength and push higher.

A reversal is likely if ETH fails to sustain prices above the 200-day EMA and the $2,820 supply zone. In this scenario, ETH would potentially seek support near lower demand levels, especially near $2,500, where it could stabilize.

If ETH maintains this support, consolidation may continue to some extent. Investors and traders are closely watching these levels to assess ETH’s next direction during this critical phase.

Featured image from Dall-E, chart from TradingView