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Ethereum
$4,130.63 0.84%
ETH · 5w

This Ethereum price chart pattern suggests ETH can reach $6.5K in Q4

Ethereum's native token Ether (ETH) has rallied by more than 415% this year to over $3,800, and two major bullish patterns developing on its charts highlight the scope for another upside move, ultimately toward the $6,200–$6,500 price range.

ETH price eyes $4K resistance breakout

The first decisive break above the psychological $4,000-mark, which serves as a resistance trendline to a five-month-old ascending triangle and a cup and handle pattern, could trigger a textbook price rally in the coming sessions. 

In detail, the $6,250-level appears as the profit target for the Ascending Triangle pattern, calculated by measuring the widest distance between its horizontal and rising trendlines and adding the output to the potential breakout level around $4,000.

ETH/USD daily price chart featuring Ascending Triangle (black) and Cup & Handle (blue) pattern. Source: TradingView 

Thus, the price boom reflects moves equivalent by roughly 64%.

At the same time, the Cup and Handle pattern, which has a slightly lower success rate than Ascending Triangle, shows a potential run-up toward $6,550 in the coming sessions, up by 56% from current levels.

Its profit target emerges by measuring the distance between the Cup's right peak and its bottom and adding the outcome to the potential breakout level around $4,000 — the same as Ascending Triangle.

One of the primary catalysts that support the two bullish indicators is trading volume, which has been falling across the formation of the said patterns. That suggests a weak consolidation sentiment among traders. Meanwhile, the relative strength index (RSI) below the overbought threshold of 70 also shows adequate room for a bull run.

The Bitcoin correlation effect

The optimistic outlook for ETH appears in the wake of a market-wide upside boom led by Bitcoin's (BTC) 29% month-to-date price rally.

According to CryptoWatch, the 30-day correlation coefficient between Bitcoin and...

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