NewsBTC
29 October 2024
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Analyst Predicts Ethereum Could Reach $6,000 If $2,600 Support Holds

Ethereum's price action is currently near a critical support level at $2,600, identified by analyst Ali Martinez as a threshold for potential significant movement. Sustaining this support could lead to a rally towards a target of $6,000, although some market observers warn that the support may fail under pressure.

Since July 2023, Ethereum has formed a rising channel, characterized by two parallel trend lines indicating support and resistance levels. The cryptocurrency is nearing the lower edge of this channel, with expectations of a potential rally.

Important Support And Resistance Zones

The ascending channel pattern suggests possible future paths for Ethereum. The upper trend line serves as a resistance level, while the lower line acts as support. A move past $2,600 is crucial, serving as a pivot for new price targets. Martinez advises investors to place stop-loss orders between $2,000 and $2,150 to limit potential losses while allowing for upside if Ethereum rises toward the upper trendline.

Some analysts express concerns about a potential breakdown around the $2,500 range. However, specific insights on how such a situation could still favorably impact a rally have not been provided by Martinez.

Indicators Look Positive: On-Chain Data

On-chain data indicates that 70% of Ethereum holders are profitable, which may reduce the likelihood of significant selling pressure. This positive sentiment could facilitate upward movement for Ethereum.

Robust Long-Term Projections

Long-term projections for Ethereum suggest growth potential, with current trading approximately 6.5% below next month's predicted target, indicating it may be undervalued. Predictions from CoinCheckup indicate possible returns of up to 173% within a year, which could strengthen Ethereum's support base and stabilize high price levels.

Featured image from StormGain, chart from TradingView