Ethereum is bullishly targeting $ 6.5K, while the ETH price chart draws “cup and handle”

The Ethereum blockchain’s native asset, Ether (ETH), faces a blast to $ 6,500 in the upcoming sessions.

ETH looks like a cup and a handle. Think?

– Raoul buddy (@RaoulGMI) September 15, 2021

The upward trend analogy is based on a technical textbook pattern known as a “cup and handle”. In particular, the cup and handle structure evolves after the price first rises significantly and is then corrected to create a rounded bottom known as a “cup”.

This move follows a jump towards the previous high and an unsuccessful breakout attempt above that level. As a result, the price turns back again, creating a smaller rounded bottom called the “handle”.

Eventually the price returned to previous highs for the second time and successfully broke out causing a move down the cup.

So it looks like the ETH / USD exchange rate has bottomed out and is now pegging, as shown in the chart below.

The ETH / USD cup depth is close to USD 2,437. If the pair retests the $ 4,112 resistance for a bullish breakout, its upside prospect will rise to $ 2,437. Ether will rise to $ 6,549.

A Harvard study found that cup and handle patterns on the daily timeframe chart had a success rate of 65% and 68%, respectively, in the currency and stock markets.

FOMO of the above organization

Ether’s uptrend analogy takes place amid growing institutional interest.

In a report released Sept. 7, Standard Chartered, a multinational banking giant headquartered in London, discussed the economic use case of Ether, adding that the cost of buying 1 ETH could rise to $ 26,000- $ 35,000 in the future.

“The current migration to ETH 2.0 could transform ETH by increasing its functionality and scalability and reducing environmental concerns, although it can bring with it complex security problems. More,” the report said.

“The timelines for the implementation of ETH 2.0 may be postponed, but in the short term a decline in the net supply – as the ETH is determined for ETH 2.0 – will create a price cushion.”

In an interview with CNBC, Cathie Wood, CEO of Ark Invest, said that her company will split its crypto investments into 60% bitcoin and 40% ether. The former CEO of AllianceBerntein envisioned higher demand for the ETH token, given the continued growth in the Ethereum-backed craze for decentralized finance (DeFi) and undistributed tokens (NFT).

“I am intrigued by what is happening at DeFi that is cutting the cost of financial services infrastructure in ways that the traditional financial industry does not currently appreciate.” The show. SALT Conference 2021 in New York.

“Our confidence in Ethereum has increased dramatically as we see the beginning of the transition from Proof of Work to Proof of Stake.”

Opponent Risk

Meanwhile, Ethereum has also been criticized for failing to address the issues of higher transaction fees and network congestion. This has led up-and-coming first-level blockchain competitors like Solana, Avalanche, and Cardano to snag some of Ethereum’s market hegemony.

Ethereum will take another two years, according to its official roadmap, to become a fully functional proof-of-stake protocol. The conversion process is a three-step process. In the first, Ethereum implemented Beacon Chain to introduce staking on a separate level.

Related: Cointelegraph Research: Is Solana an “Ethereum Killer?”

The next step, which is planned for around the end of 2021, will be the first chain merger of Ethereum with the Beacon Chain. In the meantime, Ethereum will introduce a preliminary “shard chain” that will allow Ethereum to process more transactions in the final phase.