Market veteran Peter Brandt is bullish on Ethereum, suggesting the altcoin might rally to a brand new all-time excessive above $5,600 following formation of a horn backside.

Famend dealer Peter Brandt just lately shared a bullish analysis of Ethereum (ETH) on X. Brandt’s commentary identifies a major horn backside sample, suggesting a possible rally to new all-time highs of $5,600. 

The Horn Backside and Rectangle Sample

Brandt referred to as consideration to the completion of a horn backside sample in February 2024. A bullish reversal sample, the horn backside sometimes types after a protracted downtrend and includes a rounded backside adopted by a pointy dip and restoration, resembling a horn. This sample signifies a possible pattern reversal from bearish to bullish.

Within the accompanying chart, Ethereum’s price motion over the previous few months has been oscillating inside a descending rectangle sample. The sample additionally resembles a bullish pennant as a result of uptrend from earlier this yr.

A perspective on $ETH
Assist was discovered at decrease boundary of 4+ month rectangle, which was a retest of the Feb completion of a horn backside
Goal, pending upside completion, is 5600+ pic.twitter.com/EThcM61KpW

— Peter Brandt (@PeterLBrandt) July 15, 2024

The higher boundary of this rectangle is round $4,093.88, whereas the decrease boundary is roughly $2,800. Brandt notes that help was discovered on the decrease boundary of this rectangle, which aligns with the retest of the horn backside completion in February.

The chart additionally options the 18-week and the 8-week shifting averages. These shifting averages present dynamic help and resistance ranges, guiding the price actions. Ethereum’s price has been respecting these shifting averages, bouncing off them because it consolidates throughout the rectangle.

In the meantime, the ADX (Common Directional Index) exhibits a worth of 24.43, indicating a pattern is current, although not very robust. This means a interval of consolidation and accumulation earlier than a possible breakout. The ATR (Common True Vary) worth of 432.39 displays the volatility over the previous 30 weeks.

Brandt Tasks Ethereum Rally Above $5,600

Brandt’s bullish outlook cites the premise of an upside breakout from the rectangle sample. The peak of the rectangle tasks upward from the breakout level to estimate the goal price. On this case, Brandt forecasts a goal above $5,600, which means a major upside potential from the present ranges.

Such a price would mark a brand new ATH for Ethereum, surpassing the earlier peak of $4,868 in November 2021. The most recent projection comes after Brandt predicted an ETH drop in June amid a head and shoulders formation. This prediction materialized, as ETH collapsed 21% lower than a month after that.

Ethereum is buying and selling at $3,420 at press im, reflecting a current decline of 1.81%. Nevertheless, it has capitalized on the continuing market revival. The present price motion exhibits Ethereum making an attempt to get better from a decrease low, according to the help recognized by Brandt.

The Relative Energy Index (RSI) is at 56.89, suggesting that Ethereum is in a impartial zone, neither overbought nor oversold. This place indicators potential for upward motion if shopping for stress will increase. 

The Shifting Common Convergence Divergence (MACD) indicator exhibits a current bullish crossover, with the MACD line crossing above the sign line. This bullish sign, mixed with rising histogram bars, helps Brandt’s optimistic outlook.