Over time, the Ethereum price has been trending sideways with no definitive move in either direction. This trend has led to the formation of an ascending channel that could change the course of things for the second-largest cryptocurrency by market cap. If this trend continues to play out, then it is possible that the Ethereum price is about to see new all-time highs.
Why Ethereum Price Could Be Headed Above $5,000
Crypto analyst Jonathan Carter shared an analysis on the X (formerly Twitter) website that takes a look at the Ethereum price and what the current trend could mean for the altcoin. Carter pointed out the current ascending channel pattern, but also what this could imply for the Ethereum price going forward.
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According to the crypto analyst, the Ethereum price is currently trading closer to the lower border of the ascending channel pattern. This is drawn from the weekly chart, and since the altcoin’s price is yet to break below this channel, then it is still very bullish.
For now, the Ethereum prognosis remains that the price will begin to surge, provided a couple of things remain. First of these is the fact that the channel structure is still intact. This suggests that the bulls are likely to push the price upward.
Next is the fact that the support zone around the $1,900 level is still holding. As long as this support holds, then the bears are unable to keep pulling the price down. But a failure to secure this level would lead to an Ethereum price crash.
Last of these is that bullish momentum is still building around Ethereum. During times of sideways movement such as this, it is often when whales are accumulating, and as a result, the bullish momentum surrounding the asset is beginning to rise.
With all the catalysts staying intact, the crypto analyst predicts that there are five (5) recovery targets for the Ethereum price in total. The fist of the targets is $2,350, which is around a 15% jump from the current level. Once this is surpassed, then the bulls move on to the second target at $2,800.
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The next recovery target then moves up to $3,550, eventually breaking the resistance at $3,000. This gives way to the $4,700 target. Hitting this target will set the stage for the Ethereum price to actually retest its current all-time high of $4,900, and then play into the final target.
This final target is placed at $5,700, which would set a new peak for the Ethereum price. However, all of these are still dependent on the ascending channel pattern staying in place and the price not breaking below the established support.
Featured image from Dall.E, chart from TradingView.com