The digital currency market is on high alert as Ethereum (ETH-USD) prepares for a major breakout. While the recent rally from its lows is taking a breather, several powerful data points suggest the coin is targeting a massive run toward the $6,000 mark. Investors are watching closely as the network shows signs of a supply squeeze that could send the price into a new record-breaking phase.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
CryptoJack Outlines the $6,000 ETH Roadmap
The price of the coin is currently resting on a historical support line that has triggered huge rallies in the past. When the asset hit this level previously, it sparked gains as high as 260%. Highlighting this setup, analyst CryptoJack said, “$ETH is holding a long-term ascending trendline support,” and asked, “Will history repeat itself?” If the coin follows its old path, the target for this move sits between $3,000 and $6,300.
Ash Crypto Confirms a Massive Price Bottom
A reliable technical indicator just gave a major buy signal that usually appears at the very end of a market drop. This bullish cross is a favorite for traders because it has a strong history of predicting price explosions. Commenting on the signal, Ash Crypto said, “$ETH weekly MACD bullish cross is now confirmed,” and noted that “The last 2 times this happened, ETH pumped 183% and 75%.” This confirmation adds a lot of weight to the idea that the recent low of $1,750 was the official bottom.
GugaOnChain Flags a Major Supply Shock
The amount of ETH coins available to buy on exchanges is shrinking at a record pace. Data shows that the number of people buying the coin is now much higher than the number of people sending it to exchanges to sell.
Analyst GugaOnChain explained, “This scenario is extremely positive for the price structure, as it reveals that there are significantly fewer addresses sending ETH to the exchange with the intention to sell than players accumulating or positioned to absorb liquidity.” The expert also added, “The supply shock is fully underway.”
At the time of writing, Ethereum’s price is sitting at $2,325.18.
