Market veteran Peter Brandt has expressed his bullish sentiment towards Ethereum (ETH), suggesting that the altcoin could experience a significant rally and reach a new all-time high above $5,600. Brandt’s analysis highlights the formation of a horn bottom pattern, which typically indicates a reversal from a bearish to a bullish trend.
The horn bottom pattern, completed in February 2024, follows a prolonged downtrend and features a rounded bottom followed by a sharp dip and recovery, resembling a horn. This pattern suggests a potential trend reversal for Ethereum. Additionally, Ethereum’s price action over the past few months has been oscillating within a descending rectangle pattern, which also resembles a bullish pennant due to an earlier uptrend.
The upper boundary of the rectangle pattern is around $4,093.88, while the lower boundary is approximately $2,800. Brandt notes that the support level found at the lower boundary aligns with the retest of the completed horn bottom pattern in February. The chart also includes the 18-week and 8-week moving averages, which provide dynamic support and resistance levels for Ethereum’s price movements. The altcoin has been respecting these moving averages, bouncing off them during its consolidation within the rectangle pattern.
The Average Directional Index (ADX) indicates the presence of a trend, though not a very strong one, with a value of 24.43. This suggests a period of consolidation and accumulation before a potential breakout. The Average True Range (ATR) value of 432.39 reflects the volatility experienced by Ethereum over the past 30 weeks.
Brandt predicts an upside breakout from the rectangle pattern, projecting a target price above $5,600. This implies a significant upside potential from the current levels and would mark a new all-time high for Ethereum, surpassing its previous peak of $4,868 in November 2021. Brandt’s optimistic outlook comes after successfully predicting an ETH drop in June due to a head and shoulders formation.
Currently trading at $3,420, Ethereum has experienced a recent decline of 1.81%. However, it has taken advantage of the ongoing market revival and is attempting to recover from a lower low, which is consistent with the support identified by Brandt. The Relative Strength Index (RSI) is at 56.89, indicating a neutral zone for Ethereum and the potential for upward movement if buying pressure increases.
The Moving Average Convergence Divergence (MACD) indicator shows a recent bullish crossover, with the MACD line crossing above the signal line. This bullish signal, combined with increasing histogram bars, further supports Brandt’s optimistic outlook.
It is important to note that this content is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.