Ethereum’s native token Ether (ETH) might reach a new all-time high in the near term as ETH hovers above $4,000. $4K is a crucial resistance level for the biggest altcoin. At the time of writing, the 30-day correlation between Bitcoin and Ether remains at 0.81 above zero.
On October 20, the price of ETH rallied by more than 5% to surpass $4,100 on the Coinbase exchange for the first time since May 2021. The crypto’s run-up above $4,000 came up mainly in the wake of Bitcoin breaking past $65,000 to go into a phase of price discovery that has peaked at $66,930 for now.
Based on data acquired by Crypto Watch, the 30-day correlation between Ether and Bitcoin came out to be 0.81. It shows an 81% linear positive correlation between the two assets.
In that context, Bitcoin’s ability to go into price discovery has opened up similar prospects for Ethereum that still trades a few hundreds below its all-time high of $4,385. One independent market analyst, Rekt Capital, commented:
Buy Ethereum Now
“If BTC broke to new all-time highs, I don’t see why ETH wouldn’t. Turn ~$4,000 into support, and ETH will levitate towards $4,400 for a break to new All-Time Highs.”
Ethereum Price Ascending Triangle Setup
Ethereum recorded its latest pump on October 20. This price action boosted the crypto’s year-to-date profits by around 450%, compared to BTC’s 130% returns within the same period.
This scenario raised the possibility of Ethereum posting better gains than Bitcoin in the coming sessions. Hence, it might surge to reach levels higher than Rekt Capital’s $4,400-target.
On Wednesday, the price of Ether surged above the Triangle’s upper trendline. But, the upside move came with lower trading volume that might see ETH retest the trendline as support in the short term.
So far, ETH has been developing an Ascending Triangle structure with a $6,500 target in the mid-term.