Expert Identifies Pattern That Could Pump Ethereum to $7k
An analyst highlights massive upside potential for Ethereum (ETH) price with targets at $6,000 and $7,000.With Bitcoin resurfacing above the $94,000 level, Ethereum is also gradually recovering.Over the past 12 hours, the altcoin king has bounced back from a low of $3,095 to its current market price of $3,281, marking a nearly 4% recovery. This suggests an extended rally if the broader market maintains its momentum.Analyst Finds Ethereum Reversal Chances under $3,000According to crypto analyst Ali Martinez, Ethereum could experience a major rebound. The recent pullback has caused Ethereum to drop below the halfway point of a rising channel pattern.Martinez predicts that Ethereum's price could retest the lower boundary of the rising-channel pattern around the $2,800 mark.According to him, the price could act as a launchpad for a new bullish trend. Specifically, the rebound from the ascending demand line could send Ethereum to $6,000. Supporting the bullish outlook, Martinez also pointed to a potential inverted head and shoulders pattern forming in Ethereums price trend.On the 12-hour chart, the ongoing pullback could complete the right shoulder of this pattern, with the neckline near the $4,000 psychological level. However, the short-term pullback may conclude near $2,900.This could present a great buying opportunity. Based on this bullish pattern, the price could eventually reach the $7,000 target.Ethereum Derivatives Show Short-term Bearish ControlDespite the bullish price forecast, short-term bearish sentiment is dominating Ethereum derivatives. Ethereums open interest has dropped by 1.25% to $29.30 billion.Meanwhile, the long-to-short ratio remains below 1, indicating a higher number of bearish positions. Additionally, funding rates have fallen from 0.0075% to 0.0041%, reflecting reduced interest in holding leveraged bullish positions.To summarize, as Ethereum navigates this crucial phase, key levels like the $2,800 support and $4,000 breakout remain crucial for its price trajectory.While short-term bearish dominance is evident in the declining open interest and long-to-short ratio, long-term holders may find lucrative entry opportunities at the current discounted prices.
Text source: The Crypto Basic
