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Ethereum (ETH) Cup-and-Handle Pattern, Traders Predict a Bull Run to $6.6k

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The Ethereum price is leading the charge in the unexpected spring back across the market.

After scaring losses of last week, ETH is unexpectedly solid, unwinding losses of November 26 as bulls reemerge after the pause over the weekend.

Ethereum Market Performance and Price Status

A section of Ethereum believers now claims the drop of November 26 was a “Black Friday offer”, allowing traders to accumulate the coin that was trading at a massive discount.

On November 26, just like the rest of the market, ETH prices fell 14 percent, clearing below a critical support trend line, signaling weakness and the beginning of another leg down.

Ethereum Daily Chart for November 29

Currently, ETHUSDT prices are relatively firm. When writing, ETH bulls are in the driving seat, notably oscillating inside the defining bear bar of last week but still below the primary support trend line.

Considering the price performance in the daily chart, ETH bears might find entries on every pullback higher but below $4.5k to unload.

Specifically, the failure of bulls to reverse losses technically swings price action to favor bears despite gains from an Effort versus Results perspective.

A close above $4.5k would nullify the selling pressure as bulls cement the uptrend, forming the building blocks for another potential wave higher.

If ETH prices contract from spot rates, sellers will likely flow back strongly. In that case, how prices will react at the $4k round number would determine the short-to-medium term trajectory.

On the other hand, maintaining a bullish outlook means ETH buyers—factoring in solid fundamentals—would edge past $4.5k. This will cancel the bear breakout pattern of last week to drive ETH towards $4.9k in a buy trend continuation pattern.

ETH Traders are Neutral

From a sentimental perspective, ETH traders are neutral when writing. Like in all other digital assets, ETH is not immune to FOMO and FUD. Therefore, how traders perceive the state of the market could determine the immediate term trajectory.

That ETH traders are not panicky is impressive, especially when factoring in the sharp loss of last week.

Since ETH traders are mostly neutral after a bear breakout pattern, it suggests that market participants expect a swing higher—even to new all-time highs.

ETH to $6.6k

On Twitter, one analyst thinks the rejection of lower lows over the weekend and bounce from $4k confirms the bullish breakout pattern of early November.

Most importantly, it confirms the cup-and-handle pattern clear in the daily chart.

Making projections from the depths of the cup means ETH can snap higher from spot rates. By extension, this would be fuel for the next leg up to $6.6k in subsequent sessions.

As mentioned earlier, ETHUSDT is solid to the upside, but $4k is critical support.

If bulls lose this level, the chance of the coin dropping to new Q4 2021 lows is high. Subsequently, it would confirm late last week’s losses.

Ethereum Must Clear $4.5k for Buyers to Take Back Control

On YouTube, a trader notes that ETH is trading within a selling breakout pattern. This is below the bear pennant in the 4HR chart.

However, for selling trend validation, he maintains that ETH prices must trend below $4.5k.

A total reversal of November 26 losses could embolden bulls. This would cancel the bearish outlook as traders angle $4.8k in a buy trend continuation pattern.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!

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