Ethereum has entered price discovery mode after breaching its previous all-time high at $4,380. As greed appears to be taking over the market sentiment, further buying pressure could see ETH double in market value. 

Ethereum Sets New Record High

Days after Bitcoin recorded a new all-time high of $66,990, Ethereum has hit its own new milestone. The second-largest cryptocurrency by market ca sliced through its previous peak to reach a new record high at $4,400 early Friday, before a slight cool-off. Now, it appears to be looking for further gains. 

The $4,000 resistance level breach on Oct. 20 marked a pivotal point on Ethereum’s trend as it confirmed the beginning of a new bull run. Overcoming this crucial hurdle signaled a breakout from a cup and handle formation that had been developing on ETH’s daily chart since mid-May. 

Ethereum has had several catalysts behind its upward momentum this year, including a boom in the nascent NFT space and the launch of its EIP-1559 fee burning proposal. Since EIP-1559 shipped in August, around 670,000 ETH worth nearly $3 billion has been removed from the overall supply.

The bullish continuation pattern projects a 135% target for Ethereum, determined by measuring the distance between the bottom of the cup and the pattern’s breakout level and extending that distance upward from the breakout. Therefore, a steady increase in buying pressure behind ETH could see it rise as high as $9,350. 

The optimistic outlook for Ethereum could prevail as long as it holds above $4,000. However, a failure to maintain this crucial level could create panic among traders, encouraging them to exit their long positions. The potential spike in selling pressure could push ETH to retest $3,400 or even the $3,200 support level before the uptrend resumes. 

ETH is currently trading at $4,342, which puts Ethereum’s market cap at around $512.8 billion.

Disclosure: At the time of writing, the author of this feature owned BTC and ETH. 

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