ETH shows strength and targets $ 9,400
- Ethereum is up nearly 22% in the past five days, overtaking Bitcoin.
- The bullish continuation pattern suggests that the price could double.
- Meanwhile, the ETH / BTC pair appears to be moving towards 0.1.
ETH / USD appears to have entered a new rally after bouncing off a key area of support. Meanwhile, the ETH / BTC pair is also showing signs of a bullish continuation.
ETH has had a volatile month after hitting a record high of around $ 4,870 on November 10, and then collapsing nearly 20% along with the rest of the market.
However, investors appear to have used the recent correction towards the $ 3,900 mark to re-enter the market. The significantly increased buying pressure has helped the ETH to make a profit of around 800 US dollars in the past five days.
Now, the second largest cryptocurrency by market capitalization could be well on the way to hitting a new all-time high.
The formation of a cup-in-handle pattern on ETH’s three-day chart suggests an optimistic outlook for the asset. The distance between the cup bottom and the pattern’s breakout level at $ 3,985 suggests that ETH price could double to hit its target of $ 9,400 in the short term.
That view will be invalidated if a three-day ETH candle closes below the support of $ 3,985.
3-day framework ETH / USDT chart | Source: TradingView
While the ETH / USD pair is moving higher, the ETH / BTC pair has also gained significant momentum after a seven-month consolidation phase. It is currently nearing a new high on the weekly chart, with the current price just a few satoshis below the May 15 high of 0.0824. The pair appears to have broken out of a head and shoulders pattern in late April, suggesting that another uptrend may be imminent. The multi-year consolidation model forecasts a bullish target of 0.1.
Weekly ETH / BTC chart | Source: TradingView
Ethereum looks strong in both USD and BTC pairs, especially as its circulating supply is shrinking exponentially. Ethereum rolled out a charge burning update called EIP-1559 in August that has so far taken away more than 1 million ETH. Next, Ethereum is expected to merge the mainnet with the beacon chain sometime in the first or second quarter of 2022, marking the transition from a proof-of-work to a proof-of-stake network. It is believed that the conversion could turn ETH into a deflationary asset and will be the main driver for ETH to reach its bullish target.
You can see the ETH price Here.
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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.
According to crypto briefing