By
Temitope Olatunji
April 18th, 2024
As per the recent cup-and-handle formation, Ethereum is all set to give a bullish breakout above $4,112 levels post which it can rally all the way to $6,500 and above.
The world’s second-largest cryptocurrency Ethereum (ETH) has shown massive strength over the last month. On Thursday, September 16, the ETH price rallied all the way to $3,700 levels and continues to trade above $3,500 levels even today. All this has resulted in a bullish Ethereum price prediction.
As per the recent technical charts, Ethereum (ETH) is forming a cup-and-handle pattern. As we can see in the below image, Ethereum (ETH) price is on an uptrend in the handle formation pattern.
Photo: TradingView
Currently, the depth of the ETH/USD trading pair is currently at $2,437. Should this trading pair retests $4,112 resistance it can trigger a bullish breakout move. This will result into ETH rising higher as much as $2,437. Post this breakout, ETH can rally all the way to $6,549.
Looking at the historical trends, the cup and handle formations on the technical charts have a success rate of 65% and 68%. As of now, Ethereum (EHT) is just another 30% away from its all-time high of $4,400.
Ethereum (ETH) Registers Major Exchange Outflows
On Thursday, September 16, more than $1.2 billion of ETH were removed from centralized exchanges in just 24 hours. This has been among the largest single-day drop in the ETH exchange supply.
As per data from IntoTheBlock, the last time ETH witnessed an exchange outflow of over $1 billion, the ETH price rallied 60% in just a matter of 30 days.
The net amount of $ETH leaving exchanges just hit a new record
Over $1.2B worth of $ETH left centralized exchanges yesterday
Last time $1B+ left CEXs, #Ethereum increased by 60% within 30 days pic.twitter.com/wfRuX11Rtk
— IntoTheBlock (@intotheblock) September 16, 2021
The Ethereum supply has been on a decline ever since the London hardfork upgrade last month. The upgrade resulted in EIP-1559 implementation that introduced a burn mechanism to the ETH fee market. This created deflationary pressure on the ETH blockchain resulting in supply reduction.
As per data, the emerging NFT marketplace OpenSea has been a major contributor to the declining ETH supply. This leading DApp represents more than 14% of the all burn rate.
Ethereum Price Prediction: ETH Heading to $26,000
There’s been a solid institutional interest growing for Ethereum over the last few months. Earlier this month, banking giant Standard Chartered published a report suggesting even higher price targets.
As per the banking giant, the price of ETH can go as high as $26,000–$35,000 in the future. The report noted:
“The current transition to ETH 2.0 could transform ETH by increasing its functionality and scalability and reducing environmental concerns, although it could raise more complex security issues. Timelines for ETH 2.0 rollout could slip, but in the near term, decreasing net supply — as ETH is staked for ETH 2.0 — should provide price cushion.”
Despite high market volatility, the world’s second-largest crypttocurrency has managed to deliver double-digit returns over the last month. It has shown a higher corelation with Nasdaq and negative corelation with the Volatility Index (VIX).
(3/5) #Ethereum appears to be priced as a risk-on bet.$ETH has shown a high correlation to the Nasdaq, which tends to be linked with higher potential/risk investments
It is also strongly negatively correlated to the $VIX pointing to the likelihood of a drop in volatile times pic.twitter.com/lFzTA9Rvx6
— IntoTheBlock (@intotheblock) September 16, 2021
If Ethereum continues this momentum further we can see it touching $4,000 and above in the near term.