A well-known cryptocurrency analyst recently proposed that Ethereum ($ETH), the second-largest cryptocurrency by market capitalization, might experience a substantial surge of nearly 60%, reaching $3,500. This surge is expected to occur after Ethereum breaks out of a significant accumulation zone.
As per a post shared by the prominent cryptocurrency analyst Ali Martinez on the microblogging platform X (formerly known as Twitter), Ethereum is presently undergoing a retest of its breakout zone within an ascending triangle, indicating the potential for continued upward movement.
According to Martinez, the range between $1,900 and $2,150 is deemed an optimal accumulation zone before the cryptocurrency advances towards the $3,500 target.
It’s important to recognize that an ascending triangle is a chart pattern frequently employed by technical analysts to forecast price movements. This pattern involves a horizontal line linking the high points of the price and an ascending line connecting the low points, creating a triangular shape. Analysts utilize this formation to identify potential price breakouts, whether upward or downward.
Ascending triangles are commonly interpreted as continuation patterns, indicating that they suggest the price will persist in the same direction as the trend preceding the triangle’s formation.
In contrast, earlier this month, Peter Brandt, a well-known market trader with a generally pessimistic outlook on Ethereum, predicted a potential drop in the cryptocurrency’s price to as low as $650. This projection was based on the observation of a rising wedge pattern, another concept from technical analysis used to anticipate future market trends by analyzing historical market data, specifically focusing on price and volume. Brandt, however, cautioned that such patterns are not always reliable.
This prediction coincided with the United States Securities and Exchange Commission (SEC) delaying its decision on several Ethereum exchange-traded funds (ETFs), with the final deadline set for May 2024.