Ethereum’s native token Ether (ETH) is likely to hit its own all-time high in the near term as ETH broke above $4,000, an important resistance level.
Ethereum breaks $4,000, nears new all-time high
The price of ETH on the Coinbase exchange rose by more than 5% to reach $4,100 on October 20, the first time since May 2021. The cryptocurrency’s run-up broke above $4,000 to enter a price discovery mainly driven by bitcoin (BTC). .
According to data provided by Crypto Watch, the 30-day correlation between Bitcoin and Ether turned out to be 0.81. It shows an 81% linear positive correlation between the two assets.
As a result, bitcoin’s ability to enter a price discovery opens up similar possibilities for ether, which is still a few hundred dollars below its current all-time high of $4,385.
RELATED: This Ethereum Price Chart Pattern Suggests ETH Could Reach $6.5K in Q4
“If BTC breaks to new all-time highs, I don’t know why ETH won’t,” commented Reckitt Capital, an independent market analyst, said:
“Turn ~$4,000 into support and ETH will head towards $4,400 to break a new all-time high.”
ETH Price Ascending Triangle Setup
ETH’s latest pump saw its year-to-date profit increase by nearly 450% compared to Bitcoin’s 130% return over the same period. This also raised the possibility of Ether posting better gains than Bitcoin in the coming sessions, gaining levels much above Reckitt Capital’s $4,400-target.
On Wednesday, ETH price broke above the upper trend line of the triangle. Nevertheless, trading volumes are reduced as an upside move, which could see ETH revisiting the trendline as support in the near term.
As previously reported by Cointelegraph, ETH was charting an ascending triangle formation with a target above $6,500.
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