An experienced on-chain analyst believes that Ethereum (ETH) is presenting an attractive risk-reward ratio setup.
Analyst Ali Martinez, sharing insights with his 76,900 followers on the social media platform X, highlights that ETH is potentially forming a bullish ascending channel on the weekly timeframe.
“The risk-to-reward ratio for Ethereum is too compelling to ignore for a long position! I have set my stop below $1,880 and am targeting $6,000.”
According to Martinez’s analysis, ETH is maintaining the bottom trend line of the ascending channel as support and could potentially re-test the upper boundary around $6,100 soon.
On the other hand, fellow crypto trader Benjamin Cowen, addressing his 819,000 YouTube subscribers, anticipates that based on historical patterns of Ethereum bottoming out in the fourth quarter, ETH could drop to its logarithmic trendline, possibly as low as $1,000.
“When I examine the cycle, I see ETH at $2,400 and believe there is a high likelihood that within a couple of months, probably less than two months, Ethereum will reach its bottom by Q4 of 2024…
In 2016, Ethereum hit the lower logarithmic correction trendline in early to mid-November. In 2019, it touched it in August but only durably stayed below it until late September and October.”
At the time of writing, ETH is trading at $2,409, showing a 2.1% decline in the last 24 hours.
Next, Martinez points out that Dogecoin (DOGE) is indicating a bullish reversal on the TD Sequential indicator, a tool used by traders to forecast potential trend reversals based on previous closing prices.
“The TD Sequential indicator has signaled a buy on the Dogecoin four-hour chart! If DOGE remains above the $0.141 support, we could see a bounce to $0.162.”
Additionally, Martinez suggests that if DOGE surpasses the $0.169 level and turns it into support, the next resistance level could come into play.
“If Dogecoin DOGE breaks above the $0.169 resistance, we could witness a 27% surge up to $0.209!”
DOGE is currently trading at $0.162, showing a 7.4% increase in the last 24 hours.
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Generated Image: Midjourney