Ethereum is nearing its own all-time high as ETH price recovers $ 4,000

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Ethereum’s native token Ether (ETH) is likely to hit its own record high in the short term as ETH breaks above $ 4,000, a crucial level of resistance.

Ethereum breaks $ 4,000 and approaches a new all-time high

ETH price soared over 5% on October 20, approaching $ 4,100 on the Coinbase exchange for the first time since May 2021. The cryptocurrency surge above $ 4,000 mainly occurred when Bitcoin (BTC) broke above $ 65,000 to get into pricing.

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According to data from Crypto Watch, the 30-day correlation between Bitcoin and Ether was 0.81. This shows a linear positive correlation of 81% between the two assets.

ETH / USD versus BTC / USD daily price action. Source: TradingView

As a result, Bitcoin’s ability to get into pricing opens up similar prospects for Ether, which is still trading a few hundred dollars below its current all-time high of $ 4,385.

Related: This Ethereum price chart pattern suggests that ETH may hit $ 6.5,000 in the fourth quarter

“If BTC hits new all-time highs I don’t see why ETH wouldn’t do this,” commented Rekt Capital, an independent market analyst, adding:

“Turn ~ $ 4,000 into support and ETH will float toward $ 4,400 to hit new all-time highs.”

ETH price ascending triangle setup

ETH’s newest pump has increased its profits by almost 450% since the start of the year, compared to Bitcoin’s 130% returns over the same period. This also increased the possibility that Ether will post better profits than Bitcoin in the upcoming sessions, reaching levels well above Rekt Capital’s target of $ 4,400.

On Wednesday, the ETH price broke above the upper trend line of the triangle. Nevertheless, the upward movement was accompanied by lower trading volume, which could result in ETH retesting the trend line for a short time as support.

ETH / USD daily price chart with ascending triangle setup. Source: TradingView.com

As Cointelegraph previously reported, ETH had drawn an ascending triangle structure with an upside target of $ 6,500.

The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every step of investing and trading involves risk, so you should do your own research when making a decision.