Kraken OTC’s Technical Analysis Predicts Ether Could Soar to $5.2K
Ether (ETH), the native token of Ethereum, has displayed promising signs of a potential breakout, according to a recent analysis by Kraken OTC. Technical indicators are pointing towards a new all-time high of $5,200 for ETH.
Ethereum made a confident surge past the important $3,000 mark this week, driven by several positive factors. However, reaching new record highs may face some challenges, as signs of possible short-term consolidation are becoming more prominent.
Kraken OTC’s technical analysis reveals the formation of an ascending triangle pattern on the weekly chart for Ether. This pattern consists of a horizontal trendline connecting the highs of August 2022 and April 2023, along with an upward-sloping bottom line linking the lows of June 2022 and November 2022. Breaking above this pattern indicates a significant bullish move, with a target price of approximately $5,200.
The surge above $3,000 earlier in the week marked a crucial moment for Ether. Bulls managed to overcome a historical resistance level, showcasing a series of higher lows and indicating a gradual decline in bears’ strength.
In addition to the ascending triangle pattern, Kraken OTC also considers the Ichimoku cloud, a Japanese technical analysis tool. Currently, the weekly Ichimoku Cloud model presents a bullish outlook for Ethereum. ETH is trading above key lines such as Tenkan-sen, Kijun-sen, and the Ichimoku Cloud itself. The critical level to monitor is $2,141, as a close below this level would invalidate the ascending triangle pattern.
Positive fundamental factors also contribute to Ether’s potential upward movement. Analysts highlight a notable reduction in Ether’s supply since the transition to Ethereum’s proof-of-stake consensus mechanism. Additionally, the upcoming Shanghai hard fork in June is expected to increase efficiency due to fee reduction.
Considering Ether’s recent technical breakout and positive fundamentals, investors can look forward to an optimistic scenario where Ethereum reaches a new historical high of $5,200.