Market veteran Peter Brandt is expressing optimism about the future of Ethereum (ETH), suggesting that the altcoin could rally to a new all-time high above $5,600. Brandt’s analysis is based on the formation of a horn bottom pattern, which typically indicates a trend reversal from bearish to bullish.
The horn bottom pattern, which resembles a horn in shape, forms after a prolonged downtrend and features a rounded bottom followed by a sharp dip and recovery. Brandt points out that Ethereum’s price action over the past few months has been oscillating within a descending rectangle pattern, which also resembles a bullish pennant. The upper boundary of this rectangle is around $4,093.88, while the lower boundary is approximately $2,800.
Brandt highlights that support was found at the lower boundary of the rectangle, aligning with the completion of the horn bottom pattern in February. He also notes the presence of the 18-week and 8-week moving averages, which provide dynamic support and resistance levels.
The Average Directional Index (ADX) shows a value of 24.43, indicating the presence of a trend, albeit not a very strong one. This suggests a period of consolidation and accumulation before a potential breakout. The Average True Range (ATR) value of 432.39 reflects the volatility over the past 30 weeks.
Based on the premise of an upside breakout from the rectangle pattern, Brandt projects a target price above $5,600. This would mark a new all-time high for Ethereum, surpassing the previous peak of $4,868 in November 2021. Brandt’s previous prediction of an ETH drop in June, based on a head and shoulders formation, proved to be accurate.
At the time of writing, Ethereum is trading at $3,420, showing a recent decline of 1.81%. However, it is attempting to recover from a lower low, consistent with the support identified by Brandt. The Relative Strength Index (RSI) is at 56.89, indicating a neutral zone, while the Moving Average Convergence Divergence (MACD) indicator shows a recent bullish crossover.
It is important to note that this content is informational and not financial advice. Readers are encouraged to conduct thorough research before making any investment decisions.