Ethereum'southward native token Ether (ETH) has rallied past more than than 415% this year to over $three,800, and two major bullish patterns developing on its charts highlight the telescopic for another upside move, ultimately toward the $6,200–$6,500 cost range.

ETH cost eyes $4K resistance breakout

The start decisive intermission above the psychological $4,000-mark, which serves every bit a resistance trendline to a 5-month-quondam ascending triangle and a loving cup and handle pattern, could trigger a textbook price rally in the coming sessions.

In detail, the $6,250-level appears equally the profit target for the Ascending Triangle pattern, calculated by measuring the widest altitude between its horizontal and rising trendlines and adding the output to the potential breakout level around $4,000.

ETH/USD daily price nautical chart featuring Ascending Triangle (black) and Loving cup & Handle (blueish) pattern. Source: TradingView

Thus, the cost boom reflects moves equivalent by roughly 64%.

At the same time, the Cup and Handle design, which has a slightly lower success rate than Ascending Triangle, shows a potential run-up toward $half-dozen,550 in the coming sessions, up by 56% from current levels.

Its profit target emerges by measuring the altitude between the Cup's right peak and its bottom and adding the consequence to the potential breakout level effectually $4,000 — the same equally Ascending Triangle.

One of the primary catalysts that support the two bullish indicators is trading volume, which has been falling across the formation of the said patterns. That suggests a weak consolidation sentiment amid traders. Meanwhile, the relative strength alphabetize (RSI) below the overbought threshold of lxx besides shows acceptable room for a bull run.

The Bitcoin correlation issue

The optimistic outlook for ETH appears in the wake of a market place-wide upside nail led by Bitcoin's (BTC) 29% calendar month-to-date price rally.

According to CryptoWatch, the 30-twenty-four hours correlation coefficient betwixt Bitcoin and Ethereum sits virtually 0.89, meaning that the success rate of the two avails moving in sync is 89%.

Ecoinometrics, a crypto-focused newsletter service, noted the positive correlation equally it highlighted the Ether price's reaction to Bitcoin "halvings," a pre-programmed event that slashes the BTC'southward issuance rate by one-half every four years, confronting its 21 million supply cap.

The portal studied Bitcoin and Ether'southward toll reactions to the previous two halvings and applied the dataset to predict their tops after the third halving, which took place on May 11, 2022. As a result, it anticipated BTC to rise 29.5x times to hit $253,800 past tardily November 2022.

Bitcoin vs. Ethereum — Post BTC halving growth trajectory. Source: Ecoinometrics

Similarly, Ecoinometrics highlighted $22,300 as Ether's price target in the same menses, based on its 120x price rally following the second Bitcoin halving.

ETH supply crunch continues

More than bullish cues for Ethereum appeared in the course of its ongoing supply squeeze.

Related: Ethereum price hits $3,800, boosting bulls' control in Fri's ETH options expiry

Notably, the total number of Ether deposited into the Ethereum two.0 smart contract reached an all-time high of around 7.98 million ETH on Oct. ane. These tokens remain locked/untransferable for one year or more than.

Ethereum total value in ETH 2.0 eolith contract. Source: Glassnode

Meanwhile, the total corporeality of Ether held across all exchanges continued to stay around its record low levels, with CryptoQuant reporting xviii.187 1000000 ETH in reserves on Monday compared to 23.323 million ETH a year agone.

Ethereum reserves across all exchanges. Source: CryptoQuant

Moreover, crypto data tracker Santiment reported a rise in new Ether addresses terminal week while the number of not-zero Ether wallets reached a record high of 64.5 million.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading motion involves hazard, you should conduct your own inquiry when making a decision.