Ethereum is expected to reach record highs, with its bullish power seen on the Ichimoku Kinko Hyo system.
Ichimoku Kinko Hyo, or Ichimoku for short, is an indicator that measures future price momentum and identifies future areas of support and resistance, according to Investopedia.
Ethereum surged 1.74 percent in the last 24 hours to $3,554.23, bringing its total market cap at $416.82 billion, Coindesk noted.
Ethereum Price Seen to Go Beyond $4,500 Mark
As such, Ethereum price is at the most bullish Ichimoku state since August, with the Fibonacci expansion forecasting a 61.8 percent level at $4,493. But the bulls seem to target its next resistance level at $4,500, which is above its all-time high and shows a strong psychological position, FX Street reported.
With the Fibonacci expansion levels highly expected to be reached, a $6,218 price value could be next. A so-called Ethereum triple-halving could support any rally beyond the $4,500 mark.
But the bulls would stay cautious, given that a surge beyond $3,500 is not yet certain. Its daily candlestick, which packs data for multiple time frames into single price bars, shows a common bearish hammer pattern that would indicate a near-term top. Other indications of a drop is shown, such as the Relative Strength Index displaying some flattening out against the last bear market overbought level. With that said, Ethereum could be in for a bear trap, especially if rival Cardano continues to chomp away Ethereum's use cases.
However, the uptrend is more prominent, as the long-term scenario seems largely bullish.
ETH has risen by 134 percent between July 20 and September 3, revealing a continuing upward trend. It would however consolidate soon after in a downward direction, setting up a sharp countertrend. This pattern would project a 57 percent rise, with a target of $4,816.
On October 1, Ethereum price rallied 17 percent, but then experienced a slowdown, facing the $3,398 supply barrier. Regardless of any correction, as ETH surges, barriers at $3,619, $3,952, and $4,380 will be major obstacles in its further rise, FX Street further noted in a separate report. As such, bulls have to remove these obstacles to reach the $4,816 target.
Backing this bullish projection is IntoTheBlock's Global In/Out of the Money (GIOM) model, which presents little-to-no resistance for Ethereum over $3,815. Around 1.95 million addresses that bought 3.17 million ETH at an average price of $3,815 are "Out of the Money." Because of this, a decisive close beyond $3,815 will convert more holders to profitability, thereby discarding unnecessary selling pressure.
ETH Value Projected to Increase, Dominance Among Altcoins Expected
This would lead to a massive bull run for Ethereum, skyrocketing it past its record high at $4,380 and toward the target of $4,816. In comparison to other altcoins, this technical formation projects a 19 percent increase in ETH dominance, which would paint a bullish picture for Ethereum's future.
While Ethereum enjoys such a positive outlook for the long term, the reduction in daily active addresses over the past month despite the price increase indicates that the market participants remain cautious. With this uncertainty, a chance of a flash crash remains high, which could bring Ethereum price down to $3,200.
DISCLAIMER: Cryptocurrency is highly volatile, and so the publication doesn't encourage investing in it, With that said, interested investors in Ethereum or othe crptocurrencies should exercise caution.
