Prominent crypto analyst Ali Martinez suggests that Ethereum could be set to kick off an explosive rally.
Like most crypto assets, Ethereum, the second largest crypto by market capitalization, has had a wild start to the year. After an initial rally in the first week, the asset is back in the red, trading just below its 2025 opening price of $3,330.52.
However, one analyst has now suggested that Ethereum’s recent price action could be fulfilling a pattern that might lead to an explosive price rally.
Ethereum to $7K?
Prominent crypto analyst Ali Martinez has suggested that Ethereum could be set to kick off an explosive rally. In an X post on Thursday, January 9, he asserted that the asset could rally to the $7,000 price point if it dips to $2,900.
For context, Ethereum is trading just below $3,300 at the time of writing. A surge to $7,000 would represent an over 110% increase from current prices.
Martinez based his analysis on a potentially bullish inverted head-and-shoulders chart pattern formation on Ethereum’s 12-hour candle chart.
The analyst believes that a drop to $2,900 could mark the completion of the right shoulder of this pattern, kicking off a rally first to the neckline around $4,000 and then to the $7,000 target.
Interestingly, this target aligns with Bitwise’s Ethereum prediction for 2025. The firm’s CIO, Matt Hougan, has long argued that the asset could be a “contrarian play” for 2025, citing its dominance in sectors like DeFi and tokenization.
If the rally plays out, it would be a big relief to Ethereum holders, who have become a meme in recent times amid the asset’s price struggles. These struggles have seen it underperform Bitcoin and Solana for two consecutive years.