Ethereum To $10,000? Analyst Says ETH Has To Break This Level

Keshav Verma

8 hours ago

3 mins read

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An analyst has explained how Ethereum could be eyeing $10,000 next, if it manages to break past the resistance line of this technical analysis pattern.

Ethereum Is Nearing A Retest Of This Resistance Line

In a new post on X, analyst Ali Martinez has talked about how ETH is looking from the perspective of a technical analysis (TA) pattern. The pattern in question is a Parallel Channel, which forms whenever an asset’s price witnesses consolidation between two parallel trendlines.

There are a few different types of Parallel Channels, but the one of interest in the current discussion is the variant that has its trendlines parallel to the time-axis. This type appears when the cryptocurrency shows consolidation in an exactly sideways manner.

Like other consolidation patterns in TA, the upper level of the Parallel Channel is assumed to be a source of resistance and the lower one that of support. A break out of either of these bounds can signal a continuation of trend in that direction. That is, a surge above the channel can be a bullish signal, while a fall below it may be a bearish one.

Now, here is the chart shared by the analyst that shows the Parallel Channel that the 1-week price of Ethereum has been trading inside for the last couple of years:

Ethereum Parallel Channel — The weekly price of the coin appears to be closing in on the upper level of the channel | Source: @ali_charts on X

As is visible in the above graph, Ethereum retested the lower level of the Parallel Channel earlier in the year and successfully found support at it. Since then, the coin has been marching up and its latest rally has brought it close to the upper level of the pattern, situated around $4,000.

ETH has tested this level three times during the last couple of years and all of the instances resulted in it being rejected. In the scenario that the asset can find an escape this time, however, a bullish breakout might follow.

“If Ethereum $ETH can break past $4,000, we could be looking at $10,000 next!” notes Martinez. The level is based on the fact that Parallel Channel breakouts can end up being of the same length as the height of the channel. It now remains to be seen if Ethereum will retest the upper level of the pattern in the near future and whether it would be able to find a break.

In some other news, ETH has seen a surge in the supply held by First Buyers, according to data from the on-chain analytics firm Glassnode.

Ethereum First Buyers — The value of the metric appears to have been surging in recent days | Source: Glassnode on X

First Buyers refer to the ETH investors who have purchased the cryptocurrency for the first time. The supply held by this type of holder has increased by 16% since early July, indicating that fresh inflows have been coming into the asset.

ETH Price

Ethereum has seen a rally of more than 25% in the past week, which has brought its price to $3,750.

Ethereum Price Chart — The trend in the ETH price during the past month | Source: ETHUSDT on TradingView

Featured image from Dall-E, Glassnode.com, charts from TradingView.com

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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