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ETH Might Reach $6,600 Soon

As observed by several top crypto analysts, technical analysis of the ETH price chart indicates that it shows the textbook “cup and handle” pattern.

The Cup And Handle Pattern Analysis

The pattern occurs when an asset’s bullish price run is stalled briefly by a bearish trend resulting in a formation similar to a cup. This movement bounces off the previous local peak and fails to surge past that local peak. Hence, the price retracts again and creates a slight curve known as the handle.

Eventually, the price makes a second attempt at surpassing the local high. This time it is successful and creates a path whose length is equal to the depth of the cup. Right now, the ETH/USD price has developed the ‘cup’ and is about to create the ‘handle’ as shown below.

The Pattern ETH/USD 24-hour chart. Source: TradingView

The length of ETH’s cup almost coincides with the $2,438 range. Hence, if ETH embarks on a rally towards the $4K range, it can jump by up to $2.4K. If it makes this huge jump, its next key resistance would be the $6.5K range which will be a new all-time high. Earlier studies reveal that the pattern mentioned above is proven to have an average of 67% success rate in other markets.

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Rising Institutional Interest

Ether’s bullish thesis coincides with the rising institutional interest in the second largest digital asset. A standard chartered analysis on ETH published about ten days ago revealed that ETH might cost at least $27K soon based on its current use cases alone, which they are sure will expand later in the future.

The report also said, “while there might be greater complexity issues with the switch to ETH 2.0, the movie makes it more scalable and eliminates environmental worries.” Ark Founder, Cathie Wood, recently revealed to journalists that her company’s digital asset investment in the top two digital assets is in the ratio 3:2. 

Wood predicted that ETH tokens would be more valuable soon, considering the rising interest and use cases in the DeFi and NFT space. She also said, “Devi’s growth continues at an alarming speed and is already throwing chaos into the usual financial industry. We are more confident in ETH since its switch to ETH 2.0.”

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The Emergence Of ETH Rivals

Despite the successful switch, ETH continues to struggle with rising gas fees and congestion problems. Hence, there is a shift of interest towards alternative solutions like Cardano, Solana, and Avalanche, which breaks Ether’s monopoly of the NFT and DeFi market. They aren’t successful in breaking this monopoly yet.

According to the official schedule, Ethereum requires another 24 months before its switch to ETH 2.0 is fully complete. However, it has completed the first stage, which involves introducing a different layer for staking.

The next stage is the integration between the beacon and Ether’s original chains. The last stage will be the introduction of ‘shard chains.’ Thus, the blockchain’s transaction congestion can be a thing of the past.

Shelly Melancon (Switzerland)

Shelly is a cryptocurrency enthusiast from Switzerland, she bought her first crypto in 2015 when it was way less popular then it is today and since 2017 she has been writing about cryptocurrency for online news portals. Shelly is the newest addition to the Tokenhell team, she writes mostly news and reviews related articles , stay tuned to her posts to stay up to date with the crypto world.

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