Ethereum’s native asset Ether (Ethereum) May rebound by nearly 60% in the next trading day, as the bulls are pinning their hopes on the classic bullish continuation pattern.

Independent chain analyst Matthew Hyland hinted that after the completion of the “cup handle” pattern, the price may rise from the current level of close to 4,100 US dollars to 6,500 US dollars or more. In a tweet posted on Monday.

Perfect cup handle retest

Hyland’s chart shows that Ether has returned to its old resistance point Front cup handle pattern (Yellow horizontal line in the figure below) After the cryptocurrency reached an all-time high of $4,867 on November 10, corrections began (data from Coinbase).

Ether experienced a soft rebound after testing Cup and Handle resistance as its temporary support, which increased the possibility of further upward movement in the future.

In detail, the first breakout attempt from a bullish technical setup usually requires additional confirmation.

It’s worth noting that these early gains often trap two groups of buyers: long In-depth mode Hope to break through (failure), and to chase the break but see their small profits evaporate after a sudden bearish reversal, which prompted them to defend their positions.

However, when the decline stops halfway, the situation will change, which will either lead to lateral action or lead to a full rebound. as a result, Short sellers lose confidence, And the bulls who survived the previous pullback have gained confidence in the current bullish technical settings.

The positive rebound initiates a bullish feedback loop, which prompts prices to prepare for the final stage of the pattern-a strong upward trend. As Hyland suggested, Ether is retesting the “huge cup handle pattern” resistance because the support seems perfect-this is a potential clue to a sharp rebound.

Why is it $650?

Point of purchase at Cup handle pattern As the trading volume increases, it appears when the price breaks through its resistance level.

Traders usually estimate their profit target by measuring the distance from the top right corner of the cup to its bottom, and then adding this number to the buying point.

The maximum depth of the cup is close to US$2,500, and the breakthrough point is approximately US$4,100. Therefore, the breakthrough target of this model reaches or exceeds US$6,500.Harvard Research show The success rates of Cup and Handles in the foreign exchange and stock markets are 65% and 68%, respectively.

related: Analysts said that “impulsive action” may push the price of Ethereum to the range of $6,000 to $14,000.

Conversely, a break below the resistance level of the pattern-consistent with months of uptrend line support-may invalidate the bullish setup. This may cause the price of Ether to fall to the next support line near $3,090.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.