Ethereum’s native token Ether, (ETH), is likely to surpass its record in the near term. ETH broke above $4,000 which is a critical resistance level.
Ethereum reaches $4,000 and closes to new all-time record
The ETH price climbed by more than 5% on Oct. 20, to $4,100 on Coinbase for the first time since May 2020. Bitcoin (BTC), which broke above $65,000, was the catalyst for cryptocurrency’s rise above $4,000 to reach price discovery.
Crypto Watch data shows that the 30-day correlation between Bitcoins and Ether was 0.81. This shows a 81% linear positive correlation.
Daily price action between ETH/USD and BTC/USD. Source: TradingView
This allows Bitcoin to be entered into price discovery, opening up similar opportunities for Ether. Ether trades at a few hundred bucks below its current record high of $4,385.
Similar: This Ethereum price chart pattern suggests that ETH could reach $6.5K Q4
“If BTC breaks to new all time highs, then I don’t see how ETH would,” said Rekt Capital, an independent analyst in the market.
“Turn $4,000 in support, and ETH levitates towards $4,400 to break new All-Time Highs.”
Triangle setup for ETH price ascent
ETH’s most recent pump boosted its year to date profits by nearly 450%, compared with Bitcoin’s 130% returns over the same period. This raises the possibility that Ether will post higher gains than Bitcoin in future sessions and thereby achieve levels far above Rekt Capital’s $4,000.
Wednesday’s breakout of ETH prices above Triangle’s upper trendline was a sign that ETH is now trading higher. ETH could retest the trendline support in the near future, however, if the upside move was accompanied by lower trading volume.
Daily price chart for ETH/USD featuring ascending triangle setup. Source: TradingView.com
Cointelegraph reported that ETH was painting an Ascending Triangle structure, with a $6500 upside target.
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