Cryptocurrency Forecast, Ethereum, Market Analysis

Ethereum Bull Run Indicates A Bull Price Of Over $6.5K In 2022.

Ether (ETH), Ethereum’s native token, has risen more than 415 percent this year to over $3,800, and two big bullish patterns forming on its charts suggest that it might rise much further, eventually reaching the $6,200–$6,500 price range.

The price of Ethereum is on the rise. Breakthrough of the $4000 resistance level

A definitive breach above $4,000, which acts as a resistance trendline to a five-month-old ascending triangle and a cup and handle pattern, may set off a textbook price rise in the following days.

Ethereum Bull Run Indicates A Bull Price Of Over $6.5K In 2022.

Ethereum Price Chart – Source: CoinMarketCap

The profit objective for the Ascending Triangle pattern is $6,250, which is derived by calculating the greatest distance between its horizontal and rising trendlines and adding the output to the possible breakout level of $4,000.

As a result, the price increase indicates a 64 percent increase.

Similarly, the Cup and Handle pattern, which has a little lower success probability than the Ascending Triangle, is showing a potential run-up to $6,550 in the coming sessions, up 56 percent from current levels.

Its profit objective is calculated by adding the distance between the Cup’s right peak and bottom to the possible breakout level of $4,000, which is the same as the Ascending Triangle.

Bitcoin Linkage Effect

The bullish forecast for ETH comes after a market-wide rise, driven by Bitcoin’s (BTC) 29 percent month-to-date price increase.

The 30-day correlation coefficient between Bitcoin and Ethereum is at 0.89, indicating that the two assets have an 89 percent chance of advancing in lockstep.

The favorable link was observed by Ecoinometrics, a crypto-focused newsletter service, as it highlighted the Ether price’s reaction to Bitcoin “halvings,” a pre-programmed occurrence that halves the BTC’s issuance rate every four years, against its 21 million supply cap.

The portal analyzed Bitcoin and Ether’s price responses to the past two halvings and used the data to forecast their peaks during the third halving on May 11, 2020. As a result, it forecasted a 29.5x increase in BTC to $253,800 by late November 2021.

Similarly, based on Ether’s 120x price rise following the second Bitcoin halving, Ecoinometrics set a price target of $22,300 for the same period.

Leave a Comment

Your email address will not be published. Required fields are marked *