Ethereum breaks out of bullish pennant, targets new all-time high at $5,000

Ethereum price lost 14% of its market value in turmoil on Friday.
ETH price is on the path to recovery with a bullish break out of the pennant.
Expect a rally to emerge as tailwinds attribute to new all-time highs.

Ethereum (ETH) looks to be back on track to new highs, following Friday’s speed bump as global markets pushed all risk assets to the downside. Over the weekend, investors reassessed the situation and bought the dip in several cryptocurrencies, including Ethereum. Expect a quick retake of the uptrend, brushing off Friday’s correction, and look for new all-time highs by the end of this week.

Ethereum price will hit $5,000 by the end of this week

Ethereum price saw bulls pushed out of their positions, and their stops runat $4,060. The monthly pivot stopped bears short in their tracks, however, and ETH made no further lows. Instead, investors saw tremendous buy opportunities and began accumulating several cryptocurrencies, rebooting the overall uptrend.

ETH price is now seeing a lift in buy-side momentum with a knee jerk reaction of the Relative Strength Index (RSI) to back above 50. Bulls are currently looking to retest $4,465, a short-term resistance level that once unlocked, opens the door towards $4,646. Expect this level not to give way easily, however, as bears have the advantage of both the historical level and the red descending trend line to set up their defenses.

ETH/USD daily chart

As current tailwinds continue to gather strength and momentum, expect ETH price to push through $4,465 in the coming days. This will trigger bears to take their losses and see buy-side demand pick up even further momentum, resulting in a quick spike towards $5,000.00, and new all-time highs along the way by the end of the week. If bulls do not break $4,465, expect a nosedive down to $3,687. The blue ascending trend line and the significant historical level coincide with each other.

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