Ethereum has come out of the woods and is glancing toward a new all-time high past $2,000. The flagship smart contract token had been stuck beneath $16,000 following the breakdown to price levels marginally below $1,300.
Recovery was an uphill battle mainly because of the seller congestion between $1,600 and $1,650. Trading above the 200 Simple Moving Average (SMA) also validated the ongoing uptrend. However, the biggest impact is the cup and handle pattern on the 4-hour chart.
The pattern is characterized by a cup that takes the shape of the letter “u” and a handle slightly down drifted. This pattern is considered a bullish signal in technical analysis. As the handle nears maturity, trading volume decreases.
The pattern can form in a few weeks, but some can take up to 65 weeks to develop. Note that the volume is expected to increase as the price nears a breakout, likely to test the previous high.
ETH/USD 4-hour chart
Ethereum is exchanging hands at $1,853 at the time of writing. The least resistance path seems upwards. Gains beyond $1,900 will bring Ether closer to $2,000, while the cup and handle pattern’s impact will push the price to new all-time highs.
The Moving Average Convergence Divergence (MACD) has reinforced the breakout as it moves higher within the positive region. Besides, the MACD cross above the signal line is also a huge bullish signal.
Ethereum intraday levels
Spot rate: $1,850
Relative change: 15.5
Percentage change: 0.86
Trend: Bullish
Volatility: High
