Ethereum price retested levels above $4,000 on Tuesday after rising by 0.7% at the time of writing. ETH price previously faced multiple rejections at this level, including Monday’s rejection near the $4,100 mark. Therefore a second successive retest of the $4k mark signals strength in the current traction, which could ultimately trigger a decisive breakout.
DeFi and whale activity signal Ethereum price resurgence
Ethereum chain has registered significant growth in its DeFi performance in recent days, helping prop up Ethereum price. That includes a 2% growth in its Total Value Locked (TVL) in the last day and 6% growth in the last week. Ethereum’s TVL stands at $79 billion as of this writing, accounting for 56% of the total market share. That signals increased utility and rising demand for ETH coin.
Meanwhile, whales have also raised their ETH investments significantly. According to IntoTheBlock, the number of ETH transactions valued at $100k or more rose from 5,329 to 9,686 in the 48 hours preceding this writing. That signals rising investor interest, which favours ETH price upside.
Cup and handle pattern signals a 15% upside on Ethereum price
Ethereum price has formed a cup-and-handle pattern on the daily chart, with a decisive breakout to the upside signaling strong upside potential. The cup and handle pattern is a bullish pattern, confirmed by a breakout above the “handle” as seen on the chart below.
By measuring the cup’s depth, we get a yardstick for estimating the minimum upside target following the breakout. In this case, the cup’s depth measures approximately $1,202.
Extrapolating this from the “cup”‘s brim at the intersection with the “handle” gives us a minimum price target of $4,665. That infers a 15% upside on the current price level. With ETH having gained more than 28% in the last month, the milestone seems achievable before the year ends, if the trend continues. However, for Ethereum price to hit that target, it would need to overcome the psychological barrier at $4,100.
