Ethereum, Small-Cap Correlation Fuels Bullish Rate Cut View

ETH and the Russell 2000 also appear to show a cup-and-handle pattern, a bullish continuation pattern that marks a consolidation period followed by a breakout.

Rotation into risk assets

MN Fund founder Michaël van de Poppe stated on Wednesday that there are two reasons why the price of ETH will soon reach a new all-time high.

Firstly, the ETH/BTC trading pair “looks bottomed out” and is ready for a new leg upward, after a relatively normal correction.

Secondly, gold is “insanely parabolic,” after hitting a peak of over $4,000 per ounce, which means that it should be coming down at some point, “triggering the big risk-on switch.”

“If central banks globally move into easing mode, there‘s a strong case for capital rotating into risk assets with upside, and ETH fits that profile,” d’Anethan added.

New Ether price peak is close

“ETH looks primed to break into all-time high territory, as its finally finding stability above the $4,350s,” commented chart analyst Matt Hughes on Wednesday.

“As long as that zone continues to hold as support, ATHs arent too far away.”

Hughes targeted $5,200 as the next leg up for Ether, while analyst “Poseidon” said the cycle top would be $8,500.

Ether had corrected at the time of writing, trading down 6% on the day at $4,430, and approaching a key support zone near $4,400.