The price action in ethereum has attracted the attention of both investors and analysts as it trades near a critical support level at ethereum” target=”_blank”>$2,600. Analyst Ali Martínez has pointed out this region as the critical threshold that ethereum will cross before making its next significant move.
If this support is maintained, according to Martínez, it will serve as a catalyst to organize a rally that takes the cryptocurrency to the ambitious goal of $6,000. However, things do not seem to be going so well as some observers and market participants have already opined that the existing support could break under pressure.
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twitter.com/hashtag/ethereum?src=hash&ref_src=twsrc%5Etfw”>#ethereum is testing a key support zone at $2,400. If this level is maintained, we could see twitter.com/search?q=%24ETH&src=ctag&ref_src=twsrc%5Etfw”>$eth Aiming for the upper limit of the channel near $6,000! pic.twitter.com/W8J8WVy5CL
– Ali (@ali_charts) twitter.com/ali_charts/status/1850192223024853054?ref_src=twsrc%5Etfw”>October 26, 2024
ethereum started forming an ascending channel from July 2023. An ascending channel is a technical pattern in which two parallel trend lines represent the support and resistance level. Recently, ethereum price remained near the lower border of this corridor. Martinez believes ethereum will rebound from here, so everyone is holding on tight.
Important Support and Resistance Zones
The ascending channel pattern does not happen by accident. Indicates the probable paths of ethereum. The trend line acts as a resistance level in the channel, while the trend line at the bottom actually acts as a support level for the price to bounce off. ethereum's move above $2,600 is also a major retest point that will act as a pivot for its new price target.
Martínez believes this is a good risk-reward opportunity for the investor and recommends placing stops between $200 and $2,150. The idea behind these stop-losses is to limit potential losses, but they also open higher in case ethereum rises towards the upper trend line.
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This observation seems somewhat vague as some analysts express concern about a possible breakout into the $2,500 range. However, Martínez has not given much insight into how this situation could create favorable conditions for a rebound to occur.
Indicators look positive: on-chain data
On-chain data shows that 70% of ethereum holders are profitable. Therefore, this positive attitude would be further supported in terms of the level of profitability that reduces the possibilities of large sellers. When there are no strong reasons to sell, then one could easily expect a bullish move for ethereum.
Solid long-term projections
Meanwhile, future estimates for ethereum have room for growth. Current market predictions reveal that ethereum is trading approximately 6.5% below the expected target for next month, which also means that the asset is undervalued.
The most positive projections for the long term range betweenethereum/predictions” target=”_blank”> 173% possible returns in a year, according to CoinCheckup figures. Such growth could likely fuel ethereum's upward movement and form a firmer support base that can encourage price levels to remain high and stabilized.
Featured image of StormGain, TradingView chart
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