An analyst has outlined how Ethereum could reach the $6,000 level if this historical pattern for the asset’s price continues.
Ethereum ascending channel may reveal its next destination
in a new Post On X, analyst Ali Martinez discusses a pattern that Ethereum’s 1-week price has potentially been following over the course of the past few years.
The pattern in question is the “ascending channel” from technical analysis (TA), which is a type of parallel channel. In a parallel channel, the asset consolidates between two parallel trendlines, with the upper level connecting successive tops and lower bottoms.
In the case of an ascending channel these two levels are inclined upwards, as its name already indicates. Thus, an ascending channel is only formed when the asset sets higher highs and lows.
The lower level of the pattern may support the price, while the upper level may act as resistance. If any of these levels are broken, the asset may continue to trend in that direction; A bounce above the top line may be a bullish signal, while a dip below the bottom line may foreshadow a bearish outcome.
There is also another type of parallel channel, called a descending channel, which works the same way as an ascending channel, except for the fact that it points downwards.
Now, here is the chart shared by Martinez that shows the ascending channel that the 1-week Ethereum price may be trading in right now:
As shown in the above graph, 1-week Ethereum price has recently been retesting the lows of this potential ascending channel pattern. The analyst highlights what happened the last few times the coin retested this line.
“Each bounce off the lower boundary of this channel has historically led to an average 130% increase in the price of Ethereum,” says Martínez. Thus, if the ascending channel holds for the cryptocurrency, it could benefit from another surge soon
“If this pattern holds, a similar move could push ETH to $6,000 – provided the $2,300 support level holds,” the analyst says. This support level naturally corresponds to the bottom line of the channel, a decline beyond this could potentially invalidate the formation.
Looking at this pattern forming in its weekly chart, it remains to be seen how Ethereum’s price will evolve in the coming months.
eth price
Ethereum has gained a massive 7% in the last 24 hours, taking its price above $2,600.
