This Support Level Is Crucial for Ethers Potential Rally To $6,000, Asserts Pundit
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, continued to navigate choppy waters on Tuesday as it consolidated around the $2,400 mark.
Notably, ETH has been trading in a narrow range between $2,400 and $2,800 since early September. At press time, the price was exchanging hands at $2,433, showing a 3.53% decrease over the past 24 hours, highlighting the assets recent volatility.
Nevertheless, despite recent price fluctuations, crypto analysts remain optimistic about ETHs long-term prospects, with some even eyeing a potential surge. In a tweet on Monday, crypto analyst Ali Martinez highlighted an ascending channel, pointing to a crucial support level that could determine Ethereums future trajectory.
This is a pivotal moment for ETH. If Ethereum maintains support above $2,300, a new rally toward $6,000 could be on the horizon. But if ETH loses this level, a drop to $1,600 might be next. Wrote Martinez.
Martinez further emphasized the significance of this support level in a follow-up tweet on Tuesday, noting that $2,300 represents a key zone for Ethereum, with 2.77 million addresses acquiring a total of 52.65 million ETH at this price. Such a strong accumulation could serve as a foundation for a potential upward move, should the support hold.
Other analysts also share a bullish outlook for Ethereum, though with varying projections. Brandon Tusk, a well-known market strategist, has set an ambitious Moon Target of $19,450 for Ethereum by the end of 2025. He believes Ethereum is moving past its consolidation phase and that whales have reaccumulated, signaling the beginning of a major bull run.
Meanwhile, technical analyst Melikatrader94 sees signs of bullish momentum, citing an inverse head and shoulders pattern forming on ETHs chart. As per the pundit, this pattern, often seen as a bullish reversal, suggests a potential breakout with a short-term target between $2,480 and $2,490, providing key support in the $2,340-$2,350 range.
However, not all signals are bullish. Burak Kesmeci, an analyst from CryptoQuant, raised concerns over the declining number of active Bitcoin and Ethereum addresses since the beginning of 2024. Specifically, he pointed out that Ethereum addresses have dropped from 382,000 to 312,000, reducing active participation within the network.
For the bulls to take control, a fresh influx of investors is essential, Kesmeci said, emphasizing that new capital is key to driving market growth. He added that while liquidity and investors waiting on spot ETFs have already entered the space, though this activity isnt visible on-chain, the broader lack of new participants suggests that the hype hasnt materialized yet.
Kesmeci believes the situation will change once the Fed shifts back to quantitative easing (QE), which would pump liquidity back into the market, potentially sparking renewed excitement and increasing active addresses.
Text source: ZyCrypto
