Daily Market Recap – ETHUSD Price Target Above ATH?

Ethereum, the second-largest cryptocurrency reached a new all-time high on Friday. The cryptocurrency rose 3.75 percent to $4,450 surpassing the previous high of $4,380 set on May 12.

Cryptocurrency markets have rallied sharply in recent weeks, with Ethereum up more than 60 percent since its late September low.

Meanwhile, Mark Zuckerberg announced that the parent company of social network Facebook will change its name on October 28, 2021, during an event called Facebook Connect. The group is now called Meta (hint at the metaverse), a direct reference to a pharaonic project he intends to develop.

Its objective is to transform Facebook into a metaverse, a fictional virtual universe in which people could evolve in persistent and shared spaces, in three dimensions. To build it, he plans to hire 10,000 people over the next five years. The strong hype and future prospects around the metaverse sector have boosted cryptocurrencies across the board like Decentraland with its MANA token.

From a technical perspective, Ethereum has validated a trend continuation chartist pattern: the cup with a handle is a price delay typically occurring before a strong rise.

This trend continuation pattern is formed by two rounded bottoms, the first being deeper and wider than the second. The break of the neckline/ handle around $3,950/4,050 has allowed buyers to regain control, and the break of this key level has been in high volume, representing the enthusiasm and buying force that drives the market.

The theoretical target for this pattern is calculated by taking the height of the cup to the breakout point of the handle. Therefore, the technical targets are at $5,100 and then $6,135. Of course, this scenario will be invalidated if Ethereum falls back towards $3,250.

 (Chart Source: Tradingview 29.10.2021)

As it stands, traders may look too long the ETHUSD and ride the general enthusiasm felt in the cryptocurrencies market with a target of 5,100 over the coming weeks.

Support & Resistance:

R3       6,135

R2       5,100

R1       4,450

S1        4,175

S2        3,806

S3        3,412

Disclaimer: This material has been created for information purposes only. All views expressed in this document are my own and do not necessarily represent the opinions of any entity.