Ethereum is likely to return to its all-time high (ATH) after breaking above USD 4,000, a major resistance level.
ETH has rebounded more than 8% in the past 24 hours and is currently hitting $ 4,230 for the first time since May 2021.
follow data powered by Crypto Watch, the 30-day correlation between Bitcoin and Ether is 0.81, which shows a positive linear correlation of up to 81%.
Ether vs Bitcoin Daily price action | Source: TradingView
Thus, Bitcoin’s pricing opens up similar prospects for Ether, which is still trading several hundred dollars below its current ATH of $ 4,385.
Rekt Capital, an independent market analyst, comment:
“If Bitcoin sets a new ATH, I don’t understand why Ether doesn’t. Turn $ 4,000 into support and Ether will soar to $ 4,400 to hit a new ATH. “
The most recent pump has brought Ether’s YTD return close to 450%, while Bitcoin’s only achieved 130% return. That also increases the likelihood that Ether will outperform Bitcoin in the upcoming sessions, reaching a much higher level than Rekt Capital’s target of $ 4,400.
Yesterday (October 20), the ether price broke out of the upper trend line of the ascending triangle. However, the upward move coupled with the low volume suggests that the support line may be retested in the short term.
Daily ether price chart setting up the ascending triangle | Source: TradingView
Technical indicators
RSI: On the daily timeframe, the RSI is nearing the high end of its channel, suggesting that a strong upward move is underway. This is expected to continue as ETH approaches the highest resistance ever.
MACD: The moving averages have expanded to cover the daily time frame and the histogram is on the positive side. This is an uptrend and there are currently no signs that it is changing. However, it is important to stay alert and watch for a drop after approaching ATH.
Source: TradingView
The ETH trend can be viewed as very bullish at the moment, with the expectation that the price will eventually break through a major resistance and begin to explore the price in search of a new all-time high. When it hits $ 4,380, ETH could consolidate just below that level before breaking out.
As Cointelegraph previously reported, two major bullish patterns suggest that ether could hit $ 6,500 in the fourth quarter.
Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
Mr. Teacher
According to Cointelegraph
Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page
Galaxy Digital's Novogratz predicts Bitcoin will maintain a narrow trading range of $55,000 to $75,000…
Onyx partners with fintech firm Broadridge to integrate JPMorgan's JPM Coin into Broadridge's repo platform.
Fed Chair Powell provided an overview of the current state of the U.S. economy, highlighting…
13F documents have revealed that the Wisconsin Investment Board, commonly known as the State of…
Spot Ethereum ETF approval remains uncertain amidst delays in SEC engagement and Grayscale's withdrawal.
The decentralized lending platform Liquity has unveiled its much-anticipated Liquity v2 white paper, marking a…
This website uses cookies.