Expert Identifies Pattern That Could Pump Ethereum to $7k

Ethereum

Expert Identifies Pattern That Could Pump Ethereum to $7k

Bitcoin Ethereum News

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.

According 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 Ethereums 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 Control

Despite 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.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the authors personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.