Ethereum’s price is eagerly awaiting a breakout.The cryptocurrency reached a new high of $4,878 on November 10. Regrettably, there was a correction. It also gave investors a heads-up on possible price swings.
On the daily chart, a gigantic cup and handle pattern has formed throughout this time.The “handle” component of the pattern has been shaping up nicely since the beginning of October.
The cup’s maximum depth is around $ 2,500, while the breakout point is around $4,100. As a result, the pattern’s breakout target is $ 6,500 or higher.
Cup and handles had success rates of 65 percent and 68 percent, respectively, in the currency and stock markets, according to a Harvard research.
The bullish picture emerges when ETH’s price slide comes to a halt at its old cup-and-handle resistance level, which is now acting as support, indicating the possibility of a major rebound ahead.
Despite the fact that Ethereum is the second most popular cryptocurrency, it is struggling to stay afloat. The good news is that Ethereum will not fall below $4000 in value, but it is also not attempting to rise beyond $4.5k, which is a worrying indicator for our leading altcoin. At the time of writing ETH is trading at $4,205 and has declined by 3 percent.
