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Ethereum Prepares For Potential Rally To $6,000, Analyst Says

Ethereum Prepares For Potential Rally To $6,000, Analyst Says
© Copyright Image: NewsBTC

Following a slight price dip on Friday, Ethereum (ETH) has displayed much resilience climbing by 2.84% in the past 24 hours. Commenting on the altcoins possible next movements, crypto analyst Ali Martinez has painted a potential trajectory to a new all-time high at $6,000.

Ethereum Now At Critical Support Zone Heres Why

In an X post on Saturday, Martinez shares that Ethereum is currently testing a key support level at $2,400. Notably, Ethereum slipped to around $2,410 on Friday and has since remained in this price zone following a recent rejection at $2,500. According to Ali Martinez, ETH must maintain support at $2,400 to avoid breaking an ascending channel that stretches as far back as July 2023.

Based on the analysts trading chart, a successful retest at the specified support zone will allow ETH to surge above the $3,000 mark before experiencing a consolidation between $3,350 $3,750. Thereafter, another price breakout will occur which should push Ethereums price to the upper end of its ascending channel around $6,000, indicating a potential 142% gain on the assets current market price.

However, If Ethereum bulls fail to hold the support at $2,400, the altcoin could fall by 40% finding a new support level at $1,500. To avoid significant losses in this high risk to reward situation, Ali Martinez has advised traders to put a stop loss between $2,150 $2,300.

 

Coinbase Premium Negative Index Signals Bearish Sentiment For ETH Market

In other news, CryptoQuant analyst Darkfost has noted that the Ethereum Coinbase Premium Index is currently at -2 and is highly negative. According to Darkfost, this development indicates that US institutional investors or market whales are currently aggressively offloading their ETH holdings. 

For short-term traders, this is a strong bearish signal as Ethereum is likely to experience a downtrend in the coming days. However, Darkfost states that long-term traders may want to utilize such price decline as a perfect accumulation opportunity.

At the time of writing, ETH trades at $2,473 per unit. While the altcoin might have recorded a minor gain in the past day, a decline of 6.47% and 6.27% in the last seven and thirty days, respectively, still leaves much for investors to desire. In addition, Ethereums daily trading volume, valued at $12.22 billion, reflects a  48.27% decline representing a reduced market liquidity and potential heightened price volatility.

Featured image from Dribble, chart from Tradingview

Read more: https://www.newsbtc.com/news/ethereum/ethereum-prepares-for-potential-rally-to-6000-analyst-says/

Text source: NewsBTC

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
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