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There is reason for Ethereum fans to be optimistic, as expert analysis suggests that the cryptocurrency will touch the sky in the coming months. As Bitcoin recently crossed $94,000, Ethereum is again showing signs of life and is back from its recent lows and hinting at a possible price explosion.
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A Quick Look at Patterns
Well-known crypto analyst Ali Martinez has found a bullish reversal pattern that could take the price of Ethereum to an all-time high. Trading at $3,281 at the moment, Ethereum has dropped below the middle line of its rising channel and is having a horrible sell-off.
But Martinez is one who thinks that if Ethereum can just retest the lower boundary at $2,800 and rebind, it will probably start in a bullish trend. This rebound may eventually set the stage for Ethereum to reach between $6,000 and $7,000.
If #Ethereum $ETH following an ascending parallel channel, a dip in the lower boundary at $2,800 may act as a pad to $6,000. pic.twitter.com/uYP6BW3DZh
– Ali (@ali_charts) January 10, 2025
Market Sensation and Challenges
While these are all positive signs, the future market situation is unclear. Open interest in Ethereum fell by 1.25%, indicating that some buyers are becoming cautious.
The long to short number is still less than 1, which means traders are betting against Ethereum instead. Also, funding levels have dropped significantly, indicating that people are not interested in taking long profitable bets.
While the short-term sentiment may be negative, long-term holders may see attractive entry points at current prices. Due to their inherent volatility, cryptocurrencies require constant monitoring and market awareness.
Critical Levels of Resistance
All eyes will be on Ethereum’s performance and whether it can overcome key resistance levels as we move into 2025. Several factors determine whether a person can earn $6,000 or $7,000: market conditions, investor attitudes, and general economic impact.
At the time of writing, Ether was trading at $3,274, down 0.9% and 9.9% in the daily and weekly periods, data from Coingecko shows.
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Ether Price Forecast
Ether (ETH) will probably start to rise in the next seven days; its current price sits 56% below next month’s projected value. This recovery can attract more trading activity and coincide with more optimistic conditions in the market.
Ether is expected to rise by a solid 93% in six months and 94% in three months, according to CoinCheckup’s forecasts. Although market volatility is still a significant factor to consider, the one-year forecast shows an impressive increase of 180%, which shows great potential for improvement.
Featured image from Getty Images, chart from TradingView