- Ether's recent technical breakout above resistance sets the stage for a 23% rally, according to Katie Stockton of Fairlead Strategies.
- Ether is trading well above its $3,358 resistance level, which is now likely to become support for the cryptocurrency.
- Stockton believes ether's next move will be a surge to irs prior record high of about $4,380.
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A technical breakout in the ether is setting the stage for a 23% rally to its prior record highs, Katie Stockton of Fairlead Strategies said in a note on Wednesday.
Ether closed above resistance of about $3,358 on Tuesday, and a consecutive daily close above that level would signal to Stockton that the breakout is confirmed and the uptrend in price will continue. Ether traded above $3,500 at time of publication, signaling the breakout will be confirmed barring a steep sell-off by the end of Wednesday.
"The breakout supports upside follow-through with next and final resistance near $4,380," Stockton explained. Ether reached a high of $4,380.64 on May 12, before tumbling as much as 61% in mid-July to about $1,720. Since that low, ether has rallied 95%.
Momentum in ether has been favorable, illustrated by an upturn in the moving-average-convergence-divergence indicator, as well as the cryptocurrency recently entering overbought levels based on stochastic readings.
The move higher in ether came after ethereum upgraded its network with the London hard fork. That upgrade helped limit the supply of ether and began "burning" some coins.
So far, bitcoin is not following ether's steps and breaking above near-term resistance levels, with the largest cryptocurrency by market value still pinned below $51,000, trading at around $47,400 at time of publication.
