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. Currently, Bitcoin is making a comeback above the $94,000 level, and Ethereum is also showing signs of recovery.
In the past 12 hours, Ethereum has rebounded from a low of $3,095 to its current market price of $3,281, indicating a nearly 4% recovery. This suggests that there could be an extended rally if the broader market maintains its momentum.
The analyst, Ali Martinez, believes that 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 at around $2,800, which could act as a launchpad for a new bullish trend. He specifically mentions that the rebound from the ascending demand line could potentially send 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. On the 12-hour chart, 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 is dominating Ethereum derivatives. Ethereum’s open interest has decreased by 1.25% to $29.30 billion. The long-to-short ratio is also 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.
In summary, key levels such as the $2,800 support and $4,000 breakout will play a crucial role in determining Ethereum’s price trajectory as it navigates this crucial phase. While short-term bearish dominance is evident in the declining open interest and long-to-short ratio, long-term holders may find attractive entry opportunities at the current discounted prices.