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Ethereum Breaks $4,000, Targets New All-Time Highs

ByCrypto Briefing
AuthorAli Martinez
Published 10/21/2021, 01:17 AM
BTC/USD
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ETH/USD
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Ethereum might be ready to resume its uptrend to new all-time highs after slicing through critical resistance.

Key Takeaways

  • Ethereum has breached the $4,000 resistance level.
  • Peter Brandt believes ETH has developed a cup and handle pattern.
  • If validated, prices could soon shoot up to more than $9,000.

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 Breaks Through Resistance

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.

ETH/USD Daily Chart

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.

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