Expert Identifies Pattern That Could Pump Ethereum to $7k
An analyst has identified a pattern that could potentially push the price of Ethereum (ETH) to $7,000, with targets at $6,000 and $7,000. As Bitcoin begins to recover and surpass the $94,000 level, Ethereum is also gradually bouncing back. In the past 12 hours, the altcoin has seen a 4% recovery, rising from a low of $3,095 to its current market price of $3,281. If the broader market maintains its momentum, this could indicate a continued rally.
According to crypto analyst Ali Martinez, Ethereum has the potential for a major rebound. The recent pullback has caused Ethereum to fall below the halfway point of a rising channel pattern. Martinez predicts that the price of Ethereum could retest the lower boundary of the rising-channel pattern at around $2,800. This price level could serve as a launchpad for a new bullish trend, potentially pushing Ethereum to $6,000.
Martinez also points to a potential inverted head and shoulders pattern forming in Ethereum’s price trend, supporting the bullish outlook. The ongoing pullback could complete the right shoulder of this pattern, with the neckline near the psychological level of $4,000. However, the short-term pullback may conclude near $2,900. Based on this bullish pattern, the price could eventually reach the target of $7,000.
Despite the bullish price forecast, short-term bearish sentiment dominates Ethereum derivatives. Ethereum’s open interest has dropped by 1.25% to $29.30 billion, and the long-to-short ratio remains below 1, indicating a higher number of bearish positions. Funding rates have also fallen, reflecting reduced interest in holding leveraged bullish positions.
In summary, key levels like the $2,800 support and $4,000 breakout are crucial for Ethereum’s price trajectory as it navigates this critical phase. While short-term bearish dominance is evident in declining open interest and the long-to-short ratio, long-term holders may find attractive entry opportunities at the current discounted prices.