One analyst has explained how ethereum could see a run towards the $6,000 level if this historical pattern continues to hold for the asset's price.
ethereum Ascending Channel Could Reveal Its Next Destination
in a new x.com/ali_charts/status/1845776312113533418″ target=”_blank”>mail Over at x, analyst Ali Martinez has analyzed a pattern that ethereum's 1-week price has potentially been following for the past few 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 consolidates between two parallel trend lines, with the upper level connecting successive highs and lows.
These two levels are inclined upward in the case of an Ascending Channel, as its name already indicates. Therefore, an ascending channel is only formed when the asset establishes higher highs and higher lows.
The lower level of the pattern can support the price, while the upper level can act as resistance. If any of these levels are broken, the asset could see a continuation of the trend in that direction; A rise above the upper line can be a bullish signal, while a fall below the lower line can portend a bearish outcome.
There is also another type of Parallel Channel, called the Descending Channel, which works very similar to the Ascending Channel, except for the fact that it points downwards.
Now, here is the chart shared by Martinez showing the Ascending Channel that the 1-week ethereum price could be trading on right now:
<img src="https://technicalterrence.com/wp-content/uploads/2024/10/Ethereum-Could-Hit-6000-If-This-Pattern-Holds-Analyst-Says.jpeg" alt="ethereum ascending channel” />
As shown in the chart above, the 1-week ethereum price has recently been retesting the lower level of this possible Ascending Channel pattern. The analyst has highlighted what happened the last few times that the currency retested this line.
“Each bounce at the lower boundary of this channel has historically led to an average price increase of 130% for ethereum,” Martínez notes. Therefore, if the Ascending Channel continues to hold for the cryptocurrency, it could benefit from another rise soon.
“If this pattern holds, a similar move could take eth to $6,000, as long as the $2,300 support level remains intact,” the analyst says. This support level naturally corresponds to the final outcome of the channel, a decline beyond which could potentially invalidate the formation.
Given this pattern forming on its weekly chart, it remains to be seen how ethereum price will develop in the coming months.
eth price
ethereum has enjoyed a strong 7% rally over the past 24 hours, taking its price above the $2,600 mark.
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