Ethereum blockchain’s native asset, Эфир (ETH), faces the prospect of exploding toward $6,500 in the coming sessions.

The bullish analogy takes cues from a textbook technical pattern dubbed “cup and handle.” In detail, a cup and handle structure develops after the price first rallies significantly to the upside and then corrects to carve out a rounding bottom, called the “cup.”

The move follows a rebound toward the prior high and a failed breakout attempt above the said level. В следствии, the price pulls back once again and grinds out a smaller rounding bottom, called the “handle.”

В конечном итоге, the price returns to a prior high for the second time and breaks out successfully, resulting in a move equal to the cup’s depth.

Так, it seems the ETH/USD exchange rate has painted a cup and is now forming a handle, as is shown in the chart below.

ETH/USD daily chart featuring cup and handle formation. Источник: TradingView

The depth of the ETH/USD’s cup is nearly $2,437. В следствии, should the pair retest $4,112 resistance for a bullish breakout move, its prospect of rising by as much as $2,437 will increase. При этом, Ether would eye a run-up toward $6,549.

A Harvard study shows that cup-and-handle patterns have a 65% и 68% success rate in forex and stock markets, соответственно, on daily timeframe charts.

Institutional FOMO on

Ether’s upside analogy appears against the backdrop of growing institutional interest.

In a report published on Sept. 7, Стандартный чартерный, a multinational banking giant headquartered in London, discussed Ether’s economic use case, adding that the cost to purchase 1 ETH could grow to $26,000–$35,000 in the future.

“The current transition to ETH 2.0 could transform ETH by increasing its functionality and scalability and reducing environmental concerns, although it could raise more complex security issues,” the report stated.

“Timelines for ETH 2.0 rollout could slip, but in the near term, decreasing net supply — as ETH is staked for ETH 2.0 — should provide price cushion.”

В интервью CNBC, Кэти Вуд, CEO of Ark Invest, said that her firm would split its crypto investments into 60% Биткойн и 40% Эфир. The former AllianceBernstein executive envisioned a higher demand for ETH tokens in the wake of ongoing growth in Ethereum-backed decentralized finance (DeFi) и невзаимозаменяемый токен (NFT) увлечение.

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“I’m fascinated with what’s going on in DeFi, which is collapsing the cost of the infrastructure for financial services in a way that I know that the traditional financial industry does not appreciate right now,” Wood told CNBC anchor Andrew Ross Sorkin at the SALT 2021 conference in New York.

“Our confidence in Ethereum has gone up dramatically as we’ve seen the beginning of this transition from proof-of-work to proof-of-stake.”

Rivalry risks

Между тем, Ethereum also faced criticism for its inability to resolve higher transaction fees and network congestion issues. That prompted emerging layer-one blockchain rivals, such as Solana, Avalanche and Cardano, to eat up a portion of Ethereum’s market hegemony.

It will take Ethereum another two years to become a fully functional proof-of-stake protocol, per its official roadmap. The transition consists of a three-step process. In the first, Ethereum has implemented the Beacon Chain to introduce staking on a separate layer.

Связанный: Cointelegraph Research: Является ли Солана убийцей Ethereum??’

The next step, scheduled sometime later in 2021, will see Ethereum’s original chain merger with the Beacon Chain. Между тем, Ethereum will introduce “shard chains” that expect to enable Ethereum to process more transactions in the final phase.

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