An analyst has revealed what may need to happen for Ethereum to rally towards the $6,000 mark, based on a pattern that is currently forming in its price.
Ethereum appears to be moving in an ascending channel recently
In a new post on X, analyst Ali Martínez talked about a pattern that Ethereum has potentially been following recently. The pattern in question is the “ascending channel” of technical analysis (TA).
Parallel channels are formed when the price of an asset consolidates between two parallel trendlines. The upper level of the channel is drawn by connecting successive highs, while the lower level joins the lows.
This pattern can take three orientations: positive slope, negative slope and zero slope. In the first, the trend lines follow an upward consolidation phase, and the pattern is known as an ascending channel. Likewise, in the second, the price trends downwards, and the formation is called a descending channel. The third type, where the trend lines are parallel to the time axis, does not have a specific name.
Like other consolidation patterns on AT, the upper line of a parallel channel will likely represent price resistance, while the lower line may act as a support point. Breaks above any of these lines may imply a continuation of the trend in that direction; A breakout above the channel is bullish and a break below it is bearish.
ETH spent some time making several touches of the line during the retest, but the pattern ended up holding while the coin managed to bounce. However, the resulting rally failed to take the price to the upper level as it in fact only disappeared by half. Since then, the asset has been declining.
Interestingly, a similar pattern was also observed in 2023, where a rejection in the middle of the channel sent Ethereum to a retest of financial results, starting the uptrend.
In the chart, Martínez highlighted what ETH’s next price trend could look like if it now also follows a similar trajectory. “If Ethereum $ETH is following an ascending parallel channel, a drop to the lower boundary of $2,800 could act as a launching pad for a move towards $6,000,” the analyst notes.
From the current price of the cryptocurrency, an increase to this final target of $6,000 would imply growth of almost 82%.
Ethereum has not yet been able to make any notable recovery from its recent decline as its price is still trading around $3,300.