With momentum rising across the general market, several major crypto assets like Ethereum have transitioned toward an upside direction. As a result, optimism about ETH witnessing a rally in the short term has risen significantly among crypto enthusiasts, attributing the much-anticipated move to past cycle trends.
A Major Rally For Ethereum Expected In January
As the new year begins, market expert and trader Ether Naysonal has delved into Ethereum’s recent price action, highlighting a bullish outlook. After examining ETH’s movement in the monthly time frame, the expert underlined that the altcoin could be gearing up for a significant price surge in January.
Ether Naysonal made the bold forecast, citing historical price trends pointing to a bullish month for ETH. The expert points out that Ethereum has previously demonstrated positive momentum within the month during similar market cycles, with a track of sustained rise interspersed with notable rallies.
While ETH approaches critical levels, Naysonal believes this upbeat strength may indicate an incoming parabolic run in January. Drawing attention to past trends, Ethereum began its parabolic surge in January 2021 after a successful retest in December 2020.
It is worth noting that this development sparked a huge rally for ETH, reaching a new all-time high and market top in the 2021 cycle. With the monthly chart reflecting the same pattern, Naysonal suggests a similar price surge to kickstart within the month, possibly to the $9,500 level.
Should the past trends repeat, the $9,500 milestone might turn out to be this market cycle’s top. In the meantime, market watchers are monitoring several trends and indicators in order to gauge ETH’s next trajectory as the bull cycle extends.
ETH’s Path To $6,000 Is Still Intact
Delving into ETH’s performance, Ali Martinez, a technical and on-chain analyst, has predicted a surge to a new all-time high at the $6,000 level. His prediction comes as the altcoin faces heightened volatility, slowing down the much-anticipated rally.
Ethereum’s path to the $6,000 milestone is bolstered by an Ascending Parallel Channel formation, a key pattern that indicates upward momentum. An ascending parallel channel is a bullish price action contained within two upside-sloping parallel lines characterized by higher highs and higher lows.
It is important to note that Ethereum has been trending within the ascending parallel channel since 2022, with each rebound from the lower boundary leading to a notable surge. According to Ali Martinez, ETH continues to hold strong within the critical chart pattern despite the volatility. As a result, he foresees a move towards the $6,000 mark in the near term.
At the time of writing, ETH was trading at $3,668, slowly drawing closer to $3,700 with a 1% increase in the last 24 hours. Investors’ sentiment has weakened as indicated by a mere 0.15% in its trading volume in the past day.
Featured image from Unsplash, chart from Tradingview.com
