After slicing through critical resistance, Ethereum may be ready to resume its uptrend to new all-time highs.
Ethereum has broken through the $4,000 barrier. ETH, according to Peter Brandt, has developed a cup and handle pattern. If confirmed, prices could quickly rise to more than $10,000.
Now that Bitcoin has reached a new all-time high, Ethereum appears to be attempting to catch up. The smart contracts behemoth recently broke through a critical resistance level, which could lead to a 134 percent increase.
Ethereum Overcomes Resistance
For the first time in nearly two months, Ethereum has risen above $4,000 per coin.
The second-largest cryptocurrency by market cap has experienced bullish price action since the beginning of the month, gaining over 1,000 points in market value. Now that ETH appears to have decisively broken through the $4,000 resistance level, it appears to face little resistance in reaching new all-time highs.
Peter Brandt, a 40-year trading veteran, believes that Ethereum’s price action since mid-May has resulted in the formation of a cup and handle on its daily chart. This type of technical pattern is used to identify opportunities to go long and is considered a bullish signal extending an uptrend. It implies that Ether is now on the verge of a 134 percent bull run that could push it past the $9,000 mark.
A bullish target is calculated by measuring the distance between the bottom of the cup and the pattern’s breakout level, then extending that distance upward from the breakout.
It is important to note that Ethereum must remain above $4,000 in order for the bullish outlook to prevail. Any signs of weakness at the current price level may prompt investors to sell in order to avoid large losses. Based on past transactions, a surge in downward pressure could push ETH to $3,400 or even $3,200 before the uptrend resumes.