Ethereum is starting to show signs of life again after weeks of muted price action, but one analyst believes the current move is just the solution start of something much bigger. This tendency is based on a technical setup built around a hidden inefficiency zone after the Ethereum price recently broke above $4,500.
The technical analysis shows that the unfilled gap could be the first waypoint in a recovery that ultimately pushes the ETH price to five figures above $10,000.
The FVG zone now acts as a magnet
Technical analysis conducted by crypto analyst Crypto Patel a path has been set out where to go the Ethereum price goes from here. However, the most important part of the analysis is a Fair Value Gap (FVG) zone that could cause the next alt season. This FVG, which is between $2,475 and $2,634, was formed during Ethereum’s collapse earlier this year, leaving an imbalance that has yet to see the price revise.
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In technical analysis, these inefficiencies and gaps tend to act like magnets, especially when price starts to recover with momentum. The expectation is that Ethereum will try to fill this zone before a major rejection happens.
Ethereum’s recent recovery above $2,300 and push to $2,415 puts it within striking distance of the FVG, and there is now a high probability that it could fill them to a level of $2,634 in the coming days.
Ethereum price chart. Source: @CryptoPatel on X
The Road to $10,000
The entire bullish argument rests on the strength of the $1,750 support zone. This level was maintained during the recent sell-off and provided the basis for the current recovery. Ethereum now looks like it is slowly turning bullish, and the structure before us has been established in three different layers. The first is to reclaim the FVG.
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The second layer is the Bearish Order Block between $2,900 and $3,035. This is where significant selling occurred in early February, turning support from a symmetrical triangle into resistance. A clear break above this order block would invalidate the lower high pattern visible on the chart above and extend into a broader uptrend. According to the analyst, this is the level that could confirm the start of a broader altcoin rally, and not just a recovery in Ethereum.
However, failure at this level keeps the current structure intact. The worst case scenario is a rejection at $3,035, which will return the ETH price to trading between $2,000 and $1,500. This reminds us that the upside scenario is not guaranteed. However, a confirmed break above $3,035 would turn the entire momentum into bullish momentum. and bullish long-term projections will start to make sense. According to Crypto Patel, the long-term goal for the Ethereum price in this case is a break above $10,000.
Featured image created with Dall.E, chart from Tradingview.com