- The cup and handle formation, the preparation of a bull’s new round, has been identified in the monthly chart of Ethereum.
- The end of this pattern may indicate Ethereum can possibly hit the $6,000 peg, a high mark from any point currently seen for Ethereum.
- The bullish breakout in Ethereum could mean that more gains are expected for the rest of the altcoin market, as Ethereum is often expected to set the tone for the rest of the market.
The market of the cryptocurrencies has been monitoring the activities of ether, which is the second largest digital currency after bitcoins. There is now a technical signal worth watching for on Ethereum’s monthly chart: the price may surge in the near future.
Based on the analyzed line chart of Ethereum for several years, traders have finally seen a bullish cup and handle formation. It is believed that this pattern forecasts the formation of the bullish breakout because it often precedes a large upswing of the price.
Ethereum's Potential Target: $6,000 and Beyond
In the cup and handle pattern, the handle is complete and has now triggered a potential large breakout as analysed on the Ethereum monthly chart. The short-term objective of this breakup can be expected to be around $6,000 which will be way above Ethereum’s current value.
Another reason to pay special attention to the possible increase in Ethereum’s price is the relation of the cryptocurrency to the category as a whole. In the past, a massive price rally of Ethereum escalated the impact on the altcoins, with many of the altcoins mirroring Ethereum’s price movements.
In other words, the perception is that if Ethereum will indeed break out and approach or pierce the $6,000 mark, it will mark the beginning of a general altcoin season as people look to the rest of the cryptocurrency space. This could be useful to investors who may be looking to make money from the bullish run on sentiment that may be likely to go across the altcoin mark.
They boycotted Ethereum and other altcoins, and instead favored the technical analysis methodologies that indicated that ethanol had formed a bullish cup and handle pattern on the Ethereum monthly chart. Just imagine if such a breakout can smear as much as $6,000, the impact this would have on the rest of the altcoin market will trigger copycat buying spree in the altcoin space.
The post $6,000 Ethereum on the Horizon? Analyzing the Breakout Potential of a Coveted Technical Formation appeared first on Crypto News Land.