With a rising channel on the weekly chart and a short-term spike in buying pressure, will Ethereum cross the $6,000 mark this November?
As the crypto market bull run continues and Bitcoin prepares for a new all-time high, Ethereum shows a V-shaped recovery gaining momentum. Positioned to reach crucial resistance near $2,750, Ethereum is on the brink of a significant breakout rally.
Will the biggest altcoin surpass this critical threshold for a price jump to cross the $3,000 mark? Let’s find out.
Ethereum Against the Local Resistance
In the daily chart, Ethereum shows a falling channel pattern. However, the altcoin shows a positive cycle, gaining momentum and ready to challenge the overhead resistance trendline.
As the underlying dynamics turn bullish, Ethereum’s price action reflects a short-term support trendline. Following a recent bounce from local support, the price has increased by 12.17% from the 7-day low of $2,379.
Currently, ETH is trading at $2,668, with an intraday gain of 1.17%. The ongoing recovery has formed five consecutive bullish candles and is approaching the neckline of a high-volume zone ranging from $2,750 to $2,875.
The upper boundary of this supply zone coincides with the 38.2% Fibonacci level at $2,870. Additionally, the overhead resistance trendline of the falling channel pattern presents a crucial barrier.
The increasing trend momentum leads to a positive crossover in the MACD and signal line. Furthermore, the recovery run exceeds the 100-day EMA and teases a potential positive crossover between the 20- and 50-day EMA. Hence, the technical indicators trigger a buy signal for Ethereum.
A breakout rally surpassing the 38.2% Fibonacci level is likely to challenge the 61.8% level at $3,336. Optimistically, the 100% Fibonacci level near the $4,000 psychological mark is a potential target for Ethereum. Conversely, crucial support levels remain at $2,500 and $2,353.
Analyst Ali Martinez Calls Ethereum Price Target at $6,000
Supporting the Ethereum rally, Ali Martinez, a well-known crypto analyst, recently highlighted a rising channel pattern in a post. This pattern appears on the weekly chart, with Ethereum receiving support from the dynamic average line of the 200-week EMA.
Based on this analysis, Ethereum has found support near the $2,400 range and is likely to challenge the channel’s upper boundary around the $6,000 mark. Notably, from ETH’s current level of $2,668, the asset needs a 124% rally to hit $6,000.
However, the midline near the psychological mark of $4,000 remains a potential checkpoint. Thus, the chances of Ethereum reaching $4,000 have notably increased as the bull market gains momentum.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's 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.
