Ethereum's native token, Ether (ETH), could see even so another strong rebound in the sessions alee every bit its toll falls into a trading zone with a recent history of attracting buyers.

The rising trendline has been triggering ETH'due south toll rebounds since the beginning of Oct and comes as a office of a broader ascending aqueduct range.

ETH/USD 4-hour price chart featuring the ascending channel setup. Source: TradingView

Every bit a result, Ether's path of least resistance has been to the upside despite pullbacks at the channel's upper trendline, with its quarter-to-date returns currently sitting at over 38%.

Most recently, the ascent trendline was instrumental in limiting sell-offs that followed Ether'south rally to a new tape high above $4,870. That prompted analysts to look some other potent price rebound in the time to come, with a "swing long" setup posted past Forexn1 on TradingView calling for a balderdash run to $5,000.

ETH/USD 8-hr toll chart featuring "swing long" setup. Source: Forexn1, TradingView

MacroCRG, a Twitter-based independent market analyst, said Ether "has to bounce" as information technology manages to concur the rising trendline as back up following the latest price pullback.

Meanwhile, another annotator, Pentoshi, likewise anticipated a rebound but discussed the prospects of corrections beneath the rising trendline. In a Nov. 12 tweet, he stated:

"I would beloved a 20-xxx% wipeout on alts. Usual balderdash run dip. Just bc I want information technology doesn't mean it volition happen. Greed to fearfulness, delight."

Pentoshi's downside target in the event of extended toll correction was near $4,000, as shown in the nautical chart below.

ETH/USD four-hour price chart featuring the ascending channel's surly breakout target. Source: Pentoshi, TradingView

Macro fundamentals support ETH bulls

Ether's ability to limit price corrections and — atop that — form new highs appears to accept more than just technical factors behind it.

Chris Weston, head of research at Pepperstone Financial Pty, cited fears of high inflation as the common denominator that has boosted demand for potential hedging avails beyond the crypto market, leading to Ether's 500-plus percentage and Bitcoin's 130-plus percent price rallies in 2022.

To investors, "Crypto is where the fast money is at," Weston said in a note.

Additionally, Mike McGlone, senior commodity strategist at Bloomberg Index, last week said he expects a $5,000 price for Ether, saying that investment "portfolios of some combination of gilt and bonds appear increasingly naked without some Bitcoin and Ethereum joining the mix."

The analyst cited declining supply as a major bullish backstop for Ether.

Namely, Ethereum'south software upgrade in August, dubbed the London difficult fork, implemented a lawmaking-change that started burning a portion of gas fees paid to miners via ETH, finer reducing the supply.

Related: Ascending channel pattern and Ethereum options data dorsum traders' $5K ETH target

The upgrade has resulted in the removal of over 860,500 ETH — now worth over $3.2 billion — since implementation, according to data provided by Ultrasound.money. At the current charge per unit, the Ethereum network expects to burn 5.3 million ETH every year versus v.4 meg ETH issued.

Ethereum fee burn. Source: Ultrasound.money

McGlone noted that a declining supply rate would keep Ether on its bullish course against rising demand:

"Simply staying the class is the more than probable outcome, equally we see information technology. Ethereum has joined Bitcoin with a supply trajectory that is in decline past lawmaking. The first-born crypto is the shop-of-value, and the No. ii is the DeFi edifice block."

The views and opinions expressed here are solely those of the writer and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves take a chance, and you should acquit your own research when making a decision.