The second most popular cryptocurrency Ethereum, the bulls’ efforts to gain momentum are subsequently traded. Experts predict a bullish movement of close to 60% in the coming sessions with a bullish continuation model.
Matthew Hyland, an on-chain analyst, Ethereumhe expects the dollar to climb from the level of $ 4,100 to $ 6,500 after completing the formation of a cup and handle. According to Hyland’s chart, Ethereum indicates that the popular crypto currency in the cup and handle formation has returned to its former point of resistance. ETH, Which had followed a correction after reaching a record high of $4,867 on November 10.
Ethereum, after testing the handle, experienced a soft retraction. This situation has increased the likelihood of an upward movement. In addition, the first breakout attempts in bullish technical installations often encounter situations that require october approval. These early gains tend to trap two groups of buyers in most cases. Those who log in from the bottom of the pattern in the hope of a break, and long-term investors. When the fall is half over, things turn around and give birth to a complete recovery with horizontal movements.
As a result, sellers lose confidence, while long-termers who have survived the previous downturn are convinced of the prevailing bullish setup. A positive pullback activates the upward cycle and causes the price to prepare for a strong uptrend in the formation.
As experienced analyst Hyland predicts, Ethereum, the support will not work, and the handle model will lead to a re-test of its resistance. Confirmation of this upward trend, on the other hand, can lead to a rise in the price to $ 6,500.
One cup and handle the point of purchase in the model appears when the price rises above the resistance level to an increase in the volume of transactions. Investors typically measure the distance from the right to the bottom of the handle, adding the resulting result october the purchase point and setting their goals. The maximum depth of the handle marks about 2, 500 dollars. The breaking point is around 4.100 dollars. As a result, the breakage target of the model is equivalent to a price of more than $ 6,500.
A Harvard study shows that the cup and handle formation has a success rate of over 65% for forex and stock markets.