Veteran crypto analyst Ali Martinez believes Ethereum (ETH) could rally to a 3-month high of $1,900 after it retests the lower trendline of an ascending triangle it currently trades in.
Ali made this bullish forecast while highlighting Ethereum’s price movements over a 3-day timeframe. Data from an accompanying chart indicates that ETH is on the verge of printing three consecutive winning 3-day candles, adding to Ali’s bullishness.
The Ascending Triangle
Furthermore, the chart shows that Ethereum has continued to register higher lows, forming an ascending triangle since last June. The triangle has a flat upper trendline due to Ethereum’s inability to record higher highs. However, the higher lows have made the lower trendline converge upward.
ETH 3D Chart Ali Charts
Interestingly, the recent market turmoil battered Ethereum to the lower ends of the $1,500 threshold last week. Amid this downturn, ETH retested the lower trendline. The asset remains in the territory of the lower trendline despite the latest market recovery.
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Ali believes ETH will soon rebound from the trendline, which he calls the hypotenuse. To achieve this, Ethereum must seal a solid position above the $1,600 territory, holding up above $1,650.
According to Ali, a rebound would send bullish signals. However, the analyst set a condition for any substantial gains. He noted that Ethereum must register a close above the 18-day Simple Moving Average (SMA), currently at $1,591.
Interestingly, should ETH rebound from the levels of the lower trendline of the ascending triangle and solidify its position above it, such a move could lead to a close above the 18-day SMA, adding weight to Ali’s forecast.
Ethereum Poised to Hit $1,900
Ali posits that Ethereum could rise to $1,800 to $1,900 if these events occur. Currently trading for $1,607, for ETH to hit the ultimate $1,900 target, it would need to register an 18% increase. The last time ETH saw this price level was on July 23.
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However, the path to $1,900 features several resistance points based on crucial Fibonacci levels. ETH’s first point of resistance is $1,646, while the next opposition could come at $1,742. The Fib 0.5 level presents a resistance point of $1,819. If ETH breaks this, it will meet the final resistance at $1,896.
Amid the scarcity of positive developments in the ecosystem, Ethereum would have to depend on the broader market’s direction to register substantial gains. Reports surrounding Ethereum ETFs could also support the asset’s movements.
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