Ethereum (ETH) must hold a key technical support level to potentially rally toward its previous high near $5,000, according to market analysts. Currently trading around $2,100, analysts suggest a successful defense of the $1,800 to $2,000 zone could act as a catalyst for a significant upward move. On-chain data also indicates a decline in selling pressure, with ETH’s exchange reserve recently hitting a near-decade low.
Market analysts are examining the conditions needed for Ethereum’s price to approach its all-time high. According to the popular analyst Ali Martinez, ETH’s price action may be forming an ascending triangle, with $1,800 serving as a critical line of support.
He suggested that holding that ground could trigger a bull run to as high as $4,900. Earlier this week, Martinez opined that ETH’s next major rally may only begin once it climbs back above its realized price of around $2,500.
Another analyst, Ted, thinks that as long as the $2,000 support holds, the asset could have another upside move. “Losing the $2,000 level means a new yearly low could happen soon,” he warned.
The account ALTS GEMS Alert was more bullish, arguing that a descending channel breakout “is looking clean.” They predicted a quick retest could push the price beyond $4,000.
On-chain data appears to support a bullish outlook, showing a decline in immediate selling pressure. The total number of ETH stored on centralized exchanges recently dropped to a nearly 10-year low of under 15 million coins.
Furthermore, Ethereum’s Relative Strength Index has fallen below 30. This signals the asset has entered oversold territory, which can sometimes precede a price resurgence.
