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There is a reason why Ethereum fans are optimistic, as expert analysis suggests that the cryptocurrency will touch the skies in the coming months. As Bitcoin just passed $94,000, Ethereum is also showing signs of life and recovering from its recent low and suggests the possibility of a price explosion.
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A quick look at the models
Well-known crypto analyst Ali Martinez has found a bullish reversal pattern that can potentially take the price of Ethereum to a much higher value. Currently trading at $3,281, Ethereum slipped below the midline of its ascending channel and spooked traders.
But Martinez is one who thinks that if Ethereum manages to retest the lower limit at $2,800 and bounce, it would likely launch into an uptrend. This rebound could eventually set the stage for Ethereum to reach between $6,000 and $7,000.
If #Ethereum $ETH is following a parallel ascending channel, a drop to the lower limit at $2,800 could serve as a springboard for a move towards $6,000. pic.twitter.com/uYP6BW3DZh
— Ali (@ali_charts) January 10, 2025
Market sentiment and challenges
While these are all positive signs, the mood in the futures market right now is unclear. Open interest for Ethereum decreased by 1.25%, which shows that some buyers are becoming more cautious.
The long-to-short number is still less than 1, meaning traders are betting against Ethereum instead of in its favor. Furthermore, funding rates have dropped significantly, which shows that people are less interested in taking long leveraged bets.
While short-term sentiment may be negative, long-term holders could see attractive entry points at current prices. Due to their inherent volatility, cryptocurrencies require constant vigilance and awareness of market trends.
Key levels of resistance
All eyes will be on Ethereum’s performance and its ability to surpass important resistance thresholds as we approach 2025. Several elements determine whether $6,000 or even $7,000 can be reached: market conditions, the mood of investors and the broader economic impact.
At the time of writing, Ether was trading at $3,274, down 0.9% and 9.9% in the daily and weekly ranges, data from Coingecko shows.
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Ether price forecasts
Ether (ETH) is likely to start an ascent in the next seven days; its current price is 56% lower than the expected value for next month. This recovery can attract more trading activity and fits the optimistic market trends.
According to CoinCheckup forecasts, Ether is expected to rise a solid 93% in six months and 94% in three months. Although market volatility is still of great importance to take into account, a one-year forecast reveals an impressive 180% increase, demonstrating great potential for development.
Featured image from Getty Images, chart from TradingView