The post Ethereum Price Analysis: Can ETH Climb to $6,000 in the Coming Weeks? appeared first on Coinpedia Fintech News
This month, the Ethereum market opened with a large red candlestick. By the third of October, it dropped to a low of $2,351.01. Currently, the market looks slightly bullish. On the fourth of October, buying pressure stepped in. The newly gained momentum is pushing the price upwards at this moment. Can this newly gained strength take the price to new heights? Certain technical analysis experts have made some positive remarks about the future prospects of the market. Eager to learn what they have observed? Read on!
Ethereum Follows Bitcoin’s Recovery
The unexpected escalation of the Israel-Iran crisis drove the price of Bitcoin to a low of $60,628 during the initial days of this month – similar to what was observed in the Ethereum market. Like ETH, on the fourth day of October, BTC buyers took control of the market, lifting the price from $60,776.02 to $62,102.19 in a single day. Since then, the price has been oscillating between $62,000 and $62,900. Right now, the BTC price stands at $62,375.
A comparative analysis of the Bitcoin daily chart and the Ethereum daily chart suggests that Ethereum has been moving in line with Bitcoin. Like Bitcoin, Ethereum is also currently immersed in the tiresome task of recovering from the recent dip it suffered in the early days of the month.
Key Technical Patterns Suggest Potential Breakout in Ethereum
Cryptocurrency technical analyst Trader Tradigrade claims that Ethereum has been following an ascending trendline since June 2022. He also adds that Ethereum has been forming Symmetrical Triangles near this trendline.
The combination of these two factors points to the possibility of an imminent bullish breakout. The chart shared by the crypto analyst indicates that a bullish breakout in Ethereum could be expected soon.
Ethereum’s Leverage Ratio and Market Activity
The Ethereum Estimated Leverage Ratio (All Exchanges) chart shows that the ratio has experienced a sharp rise. On January 4, it was just 0.21. Between April 22 and June 5, it underwent a steep rise; during that short period alone, the ratio climbed from 0.233 to 0.36. Since then, the ratio has been hovering between 0.31 and 0.39. Currently, the ratio stands at 0.35.
A high Estimated Leverage Ratio is a crystal-clear indication of incoming price volatility. The open interest of ETH has declined slightly, while Ethereum trading volume has surged by 120%.
What the general analysis of the above-given details reveals is that traders are positioning themselves for the next big price movement in the Ethereum market.
Analyst’s Ethereum Prediction Prediction: Key Support at $2,300
A post shared by Ali on X has highlighted the significance of the key support level of $2,300 in the Ethereum market. In his view, the market needs to hold this support level. He forecasts that if the Ethereum market maintains the key support level, it may be able to touch $6,000 in the near future. His post warns that if the ETH market fails to stay above this key level, it may plunge to as low as $1,600.
This is a pivotal moment for #ETH!If #Ethereum maintains support above $2,300, a new rally toward $6,000 could be on the horizon. But if $ETH loses this level, a drop to $1,600 might be next. pic.twitter.com/v5uwf8a5Un
— Ali (@ali_charts) October 7, 2024
In conclusion, right now, there is nothing that indicates that the price of Ethereum will fall below the key level of $2,300. However, it is important to closely watch how the market reacts when it breaks the pattern observed by the technical analysis expert.
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