Technical evaluation shows Ethereum has been trading in an ascending channel pattern since July 2023, largely with a series of upper highs and better lows. Because it stands, recent market movements have seen Ethereum retesting the lower trendline of this ascending channel, which could make or break its performance in the approaching months.

The present ascending channel offers a promising outlook and a projection of a rally toward the channel’s upper boundary, with a price goal near $6,000. Nevertheless, for Ethereum to capitalize on this upward momentum, the bulls might want to defend the underside trendline vigorously against bearish pressure.

Holding This Support Level Is Vital

On the time of writing, Ethereum is trading around $2,470, having declined by about 6.2% previously 24 hours. Notably, this decline has seen Ethereum approaching the critical bottom trendline. This recent decline has also caught the eye of crypto analyst Ali Martinez, who highlighted the importance of the $2,400 support level as a critical zone to observe in the times ahead. 

Martinez emphasizes that Ethereum’s current position at $2,400 represents a significant support area inside its ascending channel. If this level holds, it could function a foundational price floor, enabling Ethereum to rebound and proceed forming higher highs along a bullish trajectory.

Martinez projects that, with sufficient support at $2,400, Ethereum could rally towards a goal of $6,000. Such a move would mark a break above the present Ethereum all-time high and a 150% increase from the present support zone, signaling a powerful bullish phase if bulls successfully defend this key level.

Nevertheless, if Ethereum bulls were to fail to carry above this level, it could cascade into further declines. In such a scenario, Martinez suggests setting a stop loss between $2,300 and $2,150 to keep up a good risk-to-reward ratio.

Ethereum Looks Ready

In one other technical evaluation of Ethereum’s price motion, crypto analyst Javon Marks highlighted that Ethereum now looks ready for a much-anticipated rally. Marks identifies key bullish targets at $4,000, $4,811, and $8,400, representing potential gains of 61%, 94%, and 240% from Ethereum’s current price.

Achieving these milestones couldn’t only propel Ethereum’s price but in addition ignite rallies in other altcoins, essentially kickstating the altcoin phase on this market cycle.

Ethereum’s journey toward these ambitious price levels and its ability to challenge Bitcoin’s market dominance will likely be closely tied to the activity of large-scale investors, sometimes called whales.

Recent data from on-chain analytics platform Santiment reveals a big increase in Ethereum whale activity, reaching a six-week high on Friday. This spike in activity suggests that giant holders have begun accumulating Ethereum, which could function a powerful foundation for the anticipated price rally.

Featured image from Pexels, chart from TradingView