Doctor Profit, a crypto analyst on X (formerly Twitter), has published a highly bullish long-term report on the Ethereum price, highlighting why altcoin is the best opportunity in the market today. The analysis emphasizes that Ethereum is set to hit a local bottom and could initiate a strong move upward based on on-chain indicators and technical chart patterns.
Key Technical Indicators Signal A Major Ethereum Price Rally
In his X post, Doctor Profit emphasized his immense bullishness for Ethereum’s price outlook, sharing an optimistic prediction that is set to take place in the coming months. The analysts have disclosed that Ethereum is currently approaching a local bottom, suggesting a prime buying zone for investors.
Despite the current bearish state of the market, the analyst announced that Ethereum presents the best opportunity right now. He highlighted that key indicators, such as technical, psychological, and on-chain, can confirm his bullish outlook for the asset.
The first technical indicator mentioned is the 200-week Exponential Moving Average (EMA). Doctor Profit that the 200W EMA has historically been a critical support level for Ethereum. His report points out that ETH has briefly dropped below this level during extreme market conditions and maximum fear scenarios, such as the 2020 COVID-19 crash and the 2022 bear market.
After each event, Ethereum rebounded quickly, reinforcing the strength of its support before initiating a move towards. According to Doctor Profit, ETH is currently 18% away from reaching the 200W EMA, signaling that the altcoin is getting closer to its local bottom.
The analyst disclosed that a week ago, Ethereum was only 4% away from this key level. He further emphasized that the risk-reward around the 200W EMA was “outstanding,” with the potential for Ethereum to execute a 200% bull rally toward $8,000 and $10,000. On the flip side, the analyst shares a worst-case scenario where Ethereum sees only a 20% increase.
The next technical indicator is the Multi-Year Ascending Channel. According to the report, the altcoin has been trading within this long-term ascending channel, with the lower boundary serving as a strong support zone and prime entry-level.
The analyst expects a breakout from this Ascending Channel in the coming months. The Ethereum price targets the $4,000 milestone, which it has previously tested multiple times. A complete breakthrough from the channel could push ETH between $8,000 and $10,000, marking a historic new ATH.
Other Technical Indicators That Support ETH’s Bullish Outlook
In addition to Moving Averages and channel patterns, Doctor Profit also identified the formation of a weekly Ascending Triangle pattern on the Ethereum price chart. The analyst has described the triangle as a “crazy bullish pattern,” highlighting that ETH has apparently been forming this distinct fractal since 2020. The analyst further highlights that moves from this pattern’s time frame often lead to powerful price expansions, comparing this set-up to the recent explosive rally experienced by XRP.
Finally, Doctor Profit cited a possible liquidity cluster as support for his bullish outlook for ETH. The analyst revealed that a liquidity zone exists around the $4,000 level, aligning perfectly with both the ascending channel and the ascending triangle. Moreover, the analyst revealed that Market Makers could push ETH through the liquidity cluster, potentially fueling a massive breakout.
Featured image from Adobe Stock, chart from Tradingview.com
