Ethereum Price Analysis: $6000 Target Set – Here’s Why

The Ethereum market started this month with a steep decline, dropping to $2,351.01 by October 3. However, on October 4, buying pressure returned, pushing the price upwards. Now, the market is showing a slight bullish trend.

Could this new momentum drive Ethereum to higher levels? Several technical analysts have offered positive outlooks. Want to know what they’re seeing? Keep reading!

Ethereum Follows Bitcoin’s Recovery

The Israel-Iran crisis earlier this month triggered a drop in Bitcoin, with the price falling to $60,628. This mirrored the situation with Ethereum. On October 4, Bitcoin buyers took control, raising the price from $60,776.02 to $62,102.19 in one day. Since then, Bitcoin’s price has been fluctuating between $62,000 and $62,900, currently sitting at $62,375.

A comparative analysis of the Bitcoin daily chart and the Ethereum daily chart suggests that Ethereum has been moving in line with Bitcoin. Like Bitcoin, Ethereum is also currently immersed in the tiresome task of recovering from the recent dip it suffered in the early days of the month. 

Technical Outlook: A Bullish Breakout Ahead?

Crypto analyst Trader Tradigrade notes that Ethereum has been following an ascending trendline since June 2022. He also highlights the formation of symmetrical triangles along this trendline, often a sign of a coming bullish breakout. These factors suggest Ethereum may soon see a significant upward move.

Ethereum’s Leverage Ratio and Market Activity 

The Ethereum Estimated Leverage Ratio (All Exchanges) chart shows that the ratio has experienced a sharp rise. On January 4, it was just 0.21. Between April 22 and June 5, it underwent a steep rise; during that short period alone, the ratio climbed from 0.233 to 0.36. Since then, the ratio has been hovering between 0.31 and 0.39. Currently, the ratio stands at 0.35. 

A high Estimated Leverage Ratio is a crystal-clear indication of incoming price volatility. The open interest of ETH has declined slightly, while Ethereum trading volume has surged by 120%.

What the general analysis of the above-given details reveals is that traders are positioning themselves for the next big price movement in the Ethereum market. 

Ethereum Support Levels to Watch

Crypto analyst Ali recently shared a post on X highlighting the importance of the $2,300 support level for Ethereum. He believes that if Ethereum can hold this level, the price could reach $6,000 in the near future. However, he warns that if ETH falls below $2,300, it could drop as low as $1,600.

For now, there are no signs that Ethereum will fall below the $2,300 mark. However, it’s crucial to keep an eye on the market to see how it reacts to the patterns identified by technical analysts.

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Stay tuned to Coinpedia for the latest updates on Ethereum’s price momentum!