An analyst highlights massive upside potential for Ethereum (ETH) price with targets at $6,000 and $7,000.
With Bitcoin resurfacing above the $94,000 level, Ethereum is also gradually recovering.
Over the past 12 hours, the altcoin king has bounced back from a low of $3,095 to its current market price of $3,281, marking a nearly 4% recovery. This suggests an extended rally if the broader market maintains its momentum.
Analyst Finds Ethereum Reversal Chances under $3,000
According to crypto analyst Ali Martinez, Ethereum could experience a major rebound. The recent pullback has caused Ethereum to drop below the halfway point of a rising channel pattern.
Martinez predicts that Ethereum’s price could retest the lower boundary of the rising-channel pattern around the $2,800 mark.
According to him, the price could act as a launchpad for a new bullish trend. Specifically, the rebound from the ascending demand line could send Ethereum to $6,000.
Supporting the bullish outlook, Martinez also pointed to a potential inverted head and shoulders pattern forming in Ethereum’s price trend.
On the 12-hour chart, the ongoing pullback could complete the right shoulder of this pattern, with the neckline near the $4,000 psychological level. However, the short-term pullback may conclude near $2,900.
This could present a great buying opportunity. Based on this bullish pattern, the price could eventually reach the $7,000 target.
Ethereum Derivatives Show Short-term Bearish Control
Despite the bullish price forecast, short-term bearish sentiment is dominating Ethereum derivatives. Ethereum’s open interest has dropped by 1.25% to $29.30 billion.
Meanwhile, the long-to-short ratio remains below 1, indicating a higher number of bearish positions. Additionally, funding rates have fallen from 0.0075% to 0.0041%, reflecting reduced interest in holding leveraged bullish positions.
To summarize, as Ethereum navigates this crucial phase, key levels like the $2,800 support and $4,000 breakout remain crucial for its price trajectory.
While short-term bearish dominance is evident in the declining open interest and long-to-short ratio, long-term holders may find lucrative entry opportunities at the current discounted prices.
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