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ethereum (eth) is showing strength, finding support at a critical level around $2,400 and reaching local highs near $2,800. Top analyst Ali Martinez shared a technical analysis highlighting ethereum's potential to break out. Holding this key level suggests that eth could be on the verge of a significant rally.
Martinez's analysis points to a large trading channel with an upper limit around $6,000, indicating substantial upside if eth continues to gain momentum.
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As the cryptocurrency market broadly trends toward new highs, ethereum's performance has lagged some altcoins. A strong push above $2,700 could provide the momentum for ethereum to attract renewed interest, particularly 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 holds firm and continues to rise, the predicted surge could solidify its position as a leading asset in the next big cryptocurrency rally.
ethereum accumulation is about to end
ethereum has been consolidating since early August. Some analysts see this as a strategic accumulation phase by long-term investors before a possible breakout. x.com/ali_charts/status/1851360104920068131″ target=”_blank” rel=”nofollow”>Alí Martínez highlights this vision in his technical analysis ofsharing a chart showing ethereum trading within a channel.
According to Martinez, this ongoing consolidation around $2,400 suggests an accumulation phase, positioning eth for a powerful rise if it breaks out of its current range.
Martinez points to the critical support level of $2,400 as a base to push ethereum towards the upper boundary of the channel around $6,000. However, such a move would require eth to break above the $2,800 level first, confirming a move out of its consolidation phase.
If ethereum price closes above this level, the breakout would mark a reversal and signal a new uptrend.
This potential rally aligns with broader market trends as other altcoins and bitcoin are advancing towards new highs. Analysts believe this could create a domino effect, drawing capital into eth as investors seek out high-potential assets with established use cases and network activity.
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If ethereum can hold above $2,800 and build momentum, the move could validate Martinez's $6,000 target. Investors are watching how a breakout could signal an exponential growth phase for the second-largest cryptocurrency by market cap.
eth Testing Critical Supply Level
ethereum (eth) is trading at $2,680, just 3.5% away from its 200-day EMA of $2,776. This EMA level acts as a major resistance point and for the bulls to take control, eth must break above it and then hold this level as support to confirm an uptrend.
A push above the $2,820 supply level would further solidify the bullish momentum and set the stage for a possible breakout.
However, eth could spend several days trading below these crucial levels before a decisive move occurs. Market conditions could favor a period of consolidation, allowing eth to gather more strength and rise.
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A pullback 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 look for support around lower demand levels, particularly near $2,500, where it could stabilize.
If eth holds this support, range-bound consolidation could continue. Investors and traders are closely watching these levels to assess the next direction of eth in this critical phase.
Featured image of Dall-E, TradingView chart
