In a recent analysis shared on X, Ali Martinez delves into where Ethereum might be headed by examining a pattern emerging in its weekly price movements. This pattern, an Ascending Channel, is a form of Parallel Channel identified in technical analysis.
A Parallel Channel comprises two parallel lines between which the asset’s price oscillates. The upper trendline connects a series of peaks, while the lower trendline links troughs. Within this channel, prices often encounter resistance at the top and support at the bottom. A breakout from these boundaries typically signals a continuation in the direction of the breakout.
Notably, a typical Parallel Channel runs parallel to the time-axis. However, when skewed, it forms either an Ascending or Descending Channel. As the names suggest, the Ascending Channel trends upward while the Descending Channel trends downward, capturing upward and downward consolidations, respectively. Martinez points out that Ethereum has recently been navigating such an upward channel, as illustrated in his analysis.
The accompanying graph reveals that Ethereum’s weekly price has been moving within an Ascending Channel for a few years now. Earlier this year, the cryptocurrency tested the channel’s lower boundary and managed to secure support there, leading to a sharp bullish reversal.
Currently, Ethereum is positioned approximately halfway along the channel, indicating room to rise before approaching the upper boundary, though it may encounter resistance. Martinez mentions, “If Ethereum pulls back, watch the $3,300 level for support — it could be a strategic buying opportunity.”
Earlier this year, Ethereum breached the channel’s midpoint and surged to the upper boundary. If it can break past this middle section again, a repeat rally might be on the horizon.
Martinez sets ambitious targets: a $6,000 mid-term goal and a long-term target of $10,000. Achieving the first milestone from its current standing would mean a rise of about 62%, while reaching the latter would represent a 170% increase.
As for Ethereum’s current market performance, it’s trading around $3,700, reflecting an 8% increase over the past week.
