An analyst has explained how Ethereum (ETH) could see its price crash to $1,700 if the support level of this technical analysis (TA) pattern fails.

Ethereum Could Be In Danger Of Falling Under Ascending Channel Support

In a new post on X, analyst Ali Martinez has discussed about where Ethereum could head next based on a pattern forming in its 12-hour price chart. The pattern in question is an Ascending Parallel Channel from TA, which, as its name implies, involves two parallel trendlines that are sloped upwards.

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When the asset is inside this channel, it goes through consolidation towards a net upside. The higher tops in its price trace the upper line of the pattern, while the higher lows draw the lower level.

Like other TA patterns, the former line is assumed to act as a source of resistance in the near future and the latter as a point of support. Breaks out of either of these boundaries can imply a continuation of trend in that direction.

The Ascending Parallel Channel isn’t the only parallel channel in TA. When parallel consolidation happens towards the downside instead, the formation is known as a Descending Parallel Channel. Neither of these are the most commonly observed type, though, as that title is held by the basic Parallel Channel, which has its trendlines parallel to the time-axis (that is, they have zero slope).

Now, here is the chart shared by the analyst that shows the Ascending Channel that the 12-hour price of Ethereum has been trading inside for the last few years:

From the graph, it’s apparent that the Ethereum half-day price saw a very brief retest of the Ascending Channel’s lower level recently. The coin found support then, but its value is still floating quite close to the line, meaning that another retest could potentially happen soon. The level is currently situated at $2,500.

During the last few years, this line has continuously held for the cryptocurrency, so it’s possible that it may do so again in the near future. “If Ethereum $ETH holds above $2,500, it could rebound toward $4,000 or even $6,000,” notes Martinez.

The former target is around halfway through the channel from the current mark, while the latter corresponds to the upper level. The last time that ETH topped out was near the former line.

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“However, if $2,500 fails as support, the next target shifts to $1,700!” warns the analyst. From the current price of the coin, a crash to this target would mean a decrease of more than 39%.

It now remains to be seen whether Ethereum will retest the lower level of the Ascending Channel again in the coming days or not.

ETH Price

At the time of writing, Ethereum is floating around $2,800, down more than 6% over the last seven days.

Featured image from Dall-E, charts from TradingView.com

With the general crypto market still facing heightened volatility, Ethereum has once again failed to reclaim the pivotal $3,000 price level. Bearish pressure continues to linger in its price action, leading to speculations about its potential in the short term. Although ETH has failed to experience a major surge, analysts believe the altcoin could see a turnaround towards the upside shortly.

Ethereum Gearing Up For A Bullish Run?

Ethereum may have seen a notable decline in the last few days, but Ether Naysonal, a market expert and trader is unshaken about the heightened volatility. According to the technical expert, “ETH is still in its major uptrend,” indicating resilience amid broader market volatility.

Despite occasional pullbacks, the expert cites that ETH continues to hold key support levels, reinforcing optimistic sentiment among investors. With the altcoin maintaining its uptrend, it could pave the way for a potential breakout toward higher levels in the upcoming weeks.

Ether Naysonal highlighted alongside maintaining its major uptrend, ETH has also consistently held the $2,615 support level, which is good for its price action. However, for Ethereum to make a quick recovery, it must at least close above the $2,820 mark for one day.

A close above the $2,820 level would likely reignite bullish momentum for the altcoin again. Meanwhile. the much-anticipated pump will be triggered if the candle closes above $2,923.

Ethereum has experienced remarkable adoption and interest in spite of occasional price corrections. This growing institutional interest coupled with rising on-activity might serve as key factors bolstering the expected upside move.

Ether Naysonal has questioned the actions of individuals presently offloading their ETH holdings despite institutional investors accumulating ETH at a huge scale. Major companies are currently seen acquiring ETH in current market conditions.

Financial behemoth and asset manager firm Blackrock has purchased over 100,535 ETH, valued at $284 million. Furthermore, asset management company Fidelity has also acquired about 9,552 ETH, worth around $26.39 million.

While the biggest global investment institutions are still purchasing, the analyst asserts it is completely illogical for individual investors to sell after being exposed to misleading waves within a short period.

A Surge To New All-Time High Imminent

Several bullish structures have emerged on ETH’s chart, suggesting a possible rebound in the short term. With upside momentum building for ETH, the asset may be set for a rally toward a new all-time high.

After examining Ethereum’s price action, market expert Jonathan Carter highlighted that the asset is still trading within a Symmetrical Triangle pattern in the weekly time frame. Carter noted that liquidity was collected below support by recent downward wicks before returning to the pattern.

Once ETH breaks out of the ascending triangle, Carter anticipates a push towards higher targets such as $3,100, $4,000, $4,850, $6,000, and $7,500 in the long term.

Featured image from Unsplash, chart from Tradingview.com

• Cboe has submitted a 19b-4 filing to be allowed to list and trade options on spot Ethereum ETFs.
• The proposal follows high demand for Ethereum ETFs.
• NYSE American has made a similar proposal though it is yet to receive SEC approval.

The Cboe BZX Exchange has officially submitted a 19b-4 filing to the US Securities and Exchange Commission (SEC), seeking approval to list and trade options on spot Ethereum exchange-traded funds (ETFs).

This move signifies a pivotal step for Cboe towards expanding investor access to Ethereum, mirroring the growing demand within the cryptocurrency market.

Cboe seeks to expand its investment tools

Cboe’s proposal aims to broaden the spectrum of investment tools available to market participants. By allowing options trading on Ethereum ETFs, investors would gain an accessible means to engage with Ethereum’s price movements.

The 19b-4 filing includes funds such as those managed by Bitwise and Grayscale, notably the Grayscale Ethereum Trust and Grayscale Ethereum Mini Trust, which hold Ethereum as their primary asset.

The exchange posits that these options will serve not only as another avenue for investors to gain exposure to Ethereum but also as a crucial hedging instrument against the inherent volatility of the cryptocurrency market.

Notably, Cboe’s filling follows on the heels of a similar proposal by NYSE American, which has yet to receive SEC approval, with the regulator citing concerns over market manipulation, investor protection, and ensuring a fair trading environment.

The SEC’s hesitance is rooted in Section 6(b)(5) of the Securities Exchange Act of 1934, which emphasizes the protection of investors and the maintenance of fair and orderly markets.

Despite these challenges, Cboe’s proposal is framed as a competitive response to NYSE’s initiative, suggesting a potential market eagerness to see these financial products come to fruition.

Cboe’s approach in the filing underscores that Ethereum ETF options would be governed by the same stringent rules as other fund share options on its platform, including listing requirements, margin rules, and trading halts. This regulatory alignment aims to reassure the SEC of the proposal’s adherence to existing frameworks, similar to those applied to Bitcoin ETF options, which were approved under similar regulatory scrutiny.

The surge in investor interest in Ethereum ETFs

The timing of the Cboe filing coincides with a surge in investor interest in Ethereum ETFs. Recently, these funds have seen unprecedented trading volumes and net inflows.

For instance, on February 4, 2025, Ethereum ETFs recorded net inflows of $307.77 million, the highest single-day inflow of the year, demonstrating robust investor confidence.

This performance not only supports the rationale behind introducing options trading but also highlights the market’s readiness for such financial innovations.

The introduction of options on Ethereum ETFs could potentially stabilize Ethereum’s price by enhancing market liquidity.

Options provide sophisticated risk management tools for institutional investors, allowing them to hedge against price fluctuations. Retail traders might leverage these options for speculative gains.

This could lead to a more mature and stable market environment for Ethereum, fostering greater institutional adoption and contributing to the cryptocurrency’s mainstream financial integration.

Industry experts, like Nate Geraci from The ETF Store, have indicated that the approval process might follow a timeline similar to that of spot Bitcoin ETFs, which took about 8-9 months from launch to options trading approval.

If this precedent holds, we might see options on Ethereum ETFs becoming a reality in the near future, potentially as soon as next month, assuming regulatory hurdles are cleared.