Ethereum’s price action in recent hours suggests that a significant rebound may be on the horizon. Currently trading at $3,354, the cryptocurrency has retraced to the lower boundary of a well-defined ascending channel, sparking speculation that a bullish move could push ETH toward the $3,560 resistance zone
#Ethereum $ETH looks ready to rebound to $3,560! pic.twitter.com/iSdwGA8eLf
— Ali (@ali_charts) November 26, 2024
According to Crypto analyst Ali Martinez, The attached technical chart outlines Ethereum’s movement within a rising channel pattern, which has been guiding its price over the past several days. This pattern is marked by higher highs and higher lows, confirming the bullish trend that remains intact despite recent pullbacks. Currently, ETH has tested the channel’s support line near $3,340, a level that has historically triggered upward momentum within this formation.
The price action shows a strong rejection of lower levels, with bulls stepping in to defend the channel’s boundary. If Ethereum maintains this support, a swift recovery to the channel’s median line and eventually the upper boundary at $3,560 appears likely.
The immediate resistance for Ethereum lies at $3,400, a level coinciding with the channel’s median trendline. A breach of this level could pave the way for a rally toward $3,500, with $3,560 acting as the ultimate target within the current structure.
Beyond $3,560, Ethereum could experience heightened bullish sentiment, potentially attracting traders who have been waiting on the sidelines. However, failure to break above $3,400 could see the cryptocurrency revisiting lower levels in the channel, with the $3,300 support zone being the key area to watch.
Ethereum Targets $3,560 Amid Market Momentum and Risk Management
While the upside potential for Ethereum looks promising, the chart also highlights the importance of risk management. Traders may consider placing stop-loss orders near $3,302, slightly below the channel’s support level. A breakdown below this level could invalidate the bullish thesis and expose ETH to further declines, potentially targeting $3,250 or lower.
The well-defined stop-loss placement ensures that downside risks are contained, allowing traders to protect their capital while aiming for a higher target of $3,560.
Ethereum’s rebound prospects align with improving market sentiment across the cryptocurrency sector. Following a period of heightened volatility, the broader market appears to be stabilizing, with Bitcoin and other major altcoins also trading near critical support levels. This macro stability could provide Ethereum with the necessary momentum to reclaim higher price points.
Additionally, the relative strength index (RSI) on the hourly timeframe suggests that ETH is nearing oversold conditions, further supporting the likelihood of a bounce. If Ethereum successfully rebounds from the channel’s lower boundary, the $3,560 target could be achieved within the next trading sessions. Traders and investors will closely monitor the $3,400 resistance level for confirmation of renewed bullish momentum.
However, caution remains warranted, as a break below $3,302 could signal a bearish shift, potentially leading to a test of lower levels. For now, the technical setup strongly favors a rebound, placing Ethereum among the key cryptocurrencies to watch in the short term.
Ethereum’s resilience at these critical levels underscores the asset’s growing adoption and importance within the digital economy, leaving market participants optimistic about its near-term performance.
