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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.