Crypto Market Expert Identifies Ethereum Bottom, Forecasts Rally to Record High of $5,600
Market expert Peter Brandt has expressed his optimism about Ethereum, suggesting that the altcoin could surge to a record high exceeding $5,600 after the formation of a horn bottom pattern.
Peter Brandt, a well-known trader, recently provided a positive analysis of Ethereum on X. Brandt’s assessment highlights a significant horn bottom pattern, indicating a potential uptrend towards new all-time highs of $5,600.
The concept of the horn bottom and rectangle pattern was emphasized by Brandt, who pointed out the completion of a horn bottom pattern in February 2024. This pattern, which signifies a potential shift from a bearish to a bullish trend, typically emerges after a prolonged downtrend and features a rounded bottom followed by a sharp dip and recovery, resembling a horn.
Examining Ethereum’s price action in recent months, it has been observed to fluctuate within a descending rectangle pattern on the chart. This pattern also bears similarities to a bullish pennant due to an uptrend earlier this year.
Brandt noted that Ethereum’s price found support at the lower boundary of the rectangle pattern, aligning with the retest of the horn bottom completion in February. The chart also incorporates the 18-week and 8-week moving averages, which serve as dynamic support and resistance levels, influencing price movements.
The Average Directional Index (ADX) indicates the presence of a trend with a value of 24.43, suggesting 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.
Brandt’s optimistic projection anticipates an upward breakout from the rectangle pattern. By measuring the height of the rectangle from the breakout point, Brandt forecasts a target price exceeding $5,600, indicating substantial upside potential from current levels.
Achieving this price milestone would establish a new all-time high for Ethereum, surpassing the previous peak of $4,868 in November 2021. Brandt’s latest forecast follows his earlier prediction of an ETH decline in June due to a head and shoulders formation, which materialized with a 21% drop less than a month later.
Ethereum is currently trading at $3,420, reflecting a recent decline of 1.81%. Despite this, the cryptocurrency has benefited from the ongoing market recovery, with price action showing attempts to rebound from a lower low, consistent with Brandt’s identified support level.
Technical indicators such as the Relative Strength Index (RSI) at 56.89 suggest Ethereum is in a neutral zone, while the Moving Average Convergence Divergence (MACD) indicator signals a bullish crossover, supporting Brandt’s positive outlook on Ethereum’s future price movement.
