Analyst Ali Martinez tells us Ethereum (ETH) is still holding critical support at $2,400 with local highs pegged near $2,800. However, according to Martinez’s technical analysis, such a rally can be expected to push Ethereum into an oversold region, rising above $6,000 if momentum continues.
However, Martinez points out a trading channel with an upper bound at $6,000, suggesting that Ethereum will rally quite considerably if it can make it past major resistance levels. Ethereum’s performance has lagged behind some of the altcoins, but a breakout above $2,700 should see more of the institutional and long term players come in.
Ethereum Bulls Eye Uptrend Confirmation
Some analysts point to an accumulation phase in play for Ethereum since early August. Consolidation around $2,400 signals ETH consolidating strength for a potential breakout, Martinez said. Further breach of $2,800 level will mark the end of this consolidation and will be an indication of an upward trend.
This follows BHBIT in a broad rally in the industry, Bitcoin and altcoins reaching new highs. Analysts predict that as the firm of interest shifts, ETH would cooperate and its price to rise.
ETH is just 3.5% below its 200 day exponential moving average at $2,776, a key resistance level, currently trading at $2,680. If this threshold is pushed above by ETH bulls, then they must also hold this to confirm an uptrend. Further a break above the $2,820 supply zone would solidify bullish momentum.
The fall, however, could also take place if ETH does not hold the prices above the 200-day EMA and the $2,820 level, when the likely support could be around $2,500. If it’s like that then ETH will have to consolidate before having a decisive move.
The second largest cryptocurrency by market cap is ETH and investors are now watching as it approaches this critical phase, hoping a breakout could ignite the cryptocurrency’s momentum to exponential growth.
