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Ethereum (ETH) is showing strength, finding support at key levels around $2,400 and hitting local highs near $2,800. Top analyst Ali Martinez shared a technical analysis that highlights Ethereum’s potential for a breakout. Holding this key level suggests that ETH may be on the verge of a significant rally.
Martinez’s analysis points to a large trading channel with an upper boundary around $6,000, indicating substantial upside if ETH continues to gain momentum.
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As the crypto market broadly surges toward new highs, Ethereum’s performance has lagged behind some altcoins. A strong push beyond $2,700 could create momentum for Ethereum to attract renewed interest, especially from institutional and long-term investors.
Investors are keen to see whether it will eventually be able to catch up to the broader market. Should Ethereum hold its ground and continue its upward move, the anticipated bounce could solidify its position as a leading asset in the next major crypto rally.
Ethereum accumulation is about to end
Ethereum has been strengthening since the beginning of August. Some analysts see this as a strategic accumulation phase by long-term investors before a potential breakout. Ali Martínez highlights this approach in his technical analysis onSharing a chart showing Ethereum trading within a channel.
According to Martinez, this ongoing consolidation around $2,400 suggests a buildup phase, which puts ETH in position for a powerful surge if it breaks out of its current range.
Martinez pointed to the critical support level of $2,400 as a foundation to propel Ethereum towards the upper boundary of the channel around $6,000. However, such a move would require ETH to first break the $2,800 level, confirming its exit from the consolidation phase.
If Ethereum price closes above this level, the breakout would mark a reversal and signal a new uptrend.
This potential rally is in line with broader market trends, as other altcoins and Bitcoin are headed towards new highs. Analysts believe this could create a domino effect, attracting capital into ETH as investors look for high-growth assets with established use cases and network activity.
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If Ethereum can sustain and build momentum above $2,800, the move could validate Martinez’s $6,000 target. Investors are watching as a breakout could signal a phase of bullish growth for the second-largest cryptocurrency by market cap.
ETH tests 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 serves as a key resistance point, and for bulls to take control, ETH will need to break it and then hold this level as support to confirm the uptrend.
A push above the $2,820 supply level would further strengthen the bullish momentum and set the stage for a potential breakout.
However, ETH could spend several days trading below these important levels before a decisive move emerges. Market conditions may favor a period of consolidation, allowing ETH to gather more strength and push higher.
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If ETH fails to sustain prices above the 200-day EMA and $2,820 supply zone, a retracement is likely. In this scenario, ETH would likely seek support around lower demand levels, specifically around $2,500, where it could stabilize.
If ETH holds this support, consolidation within a range may continue. Investors and traders keep a close eye on these levels to predict the next direction of ETH during this important phase.
Image displayed from Dell-E, chart from TradingView
