Categories: Market

ETH shows strength and targets $ 9,400

Key factors

  • 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 explodes

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.

SN_Nour

According to crypto briefing

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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