Now that Bitcoin has set a new all-time high, it appears that Ethereum wants to catch up. The smart contracts giant recently breached a crucial resistance level that could lead to a raise of as much as 134%.
Ethereum is back above $4,000 for the first time in nearly two months.
Since the beginning of the month, the second-largest cryptocurrency by market cap has enjoyed bullish price action, gaining over 1,000 points in market value. Now that ETH appears to have decisively breached the $4,000 resistance level, it appears to face little opposition to reaching new all-time highs.
40-year trading veteran Peter Brandt believes that Ethereum’s price action since mid-May has led to the formation of a cup and handle on its daily chart. This type of technical pattern is considered a bullish signal extending an uptrend and is used to spot opportunities to go long. It suggests that Ether is now bound to a 134% bull run that could surpass the $9,000 level.
Such a bullish target is determined by measuring the distance between the bottom of the cup and the pattern’s breakout level and extending that distance upward from the breakout.
It is worth noting that Ethereum must hold above $4,000 for the bullish outlook to prevail. Any signs of weakness at the current price level could encourage investors to sell to avoid significant losses. Based on transaction history, a spike in downward pressure could push ETH towards $3,400 or even $3,200 before the uptrend resumes.