Ethereum Approaches Historic Highs with Optimistic Predictions for a Break Above $5000 Ethereum Approaches Historic Highs with Optimistic Predictions for a Break Above $5000

On October 7, the price of the second-largest cryptocurrency approached its all-time high, surpassing the $4800 mark. MN Fund founder Michael van de Poppe anticipates that a new ATH will be achieved in the near future.

He first pointed to the ETH/BTC ratio, noting that the pair has «hit the bottom» at the support level of 0.0256 and is «ready for a new growth phase.»

Additionally, rising dynamics will be supported by gold. The precious metal had previously set a record above $4000 per ounce. Now, a correction is anticipated, which is expected to «increase demand for risk assets» such as cryptocurrencies.

Other market participants also maintain a positive outlook on the leading altcoin. Analyst Matt Hughes believes that the asset is «poised to break into the region of historical highs.»

*»Ethereum has finally stabilized above $4350. As long as this zone serves as support, new records are within reach. The next target is $5200,»* he stated.

A trader using the alias Poseidon forecasted a cycle peak at $8500.

At the time of writing, the second-largest cryptocurrency is trading around $4500, having dropped 4% over the past day.

Ethereum also exhibits a high correlation with the Russell 2000 index, which tracks small-cap stocks. Analysts at Milk Road predict a synchronous rise in assets amidst an anticipated decrease in the key interest rate by the Federal Reserve.

*»The correlation seems almost mystical. The Russell 2000 index and Ethereum are essentially moving in sync. Both assets are extremely sensitive to monetary policy. With four consecutive rate cuts in the horizon, a growth is expected,»* they wrote.

A «Cup and Handle» pattern is forming on the charts, indicating a bullish continuation model that signifies a consolidation period before a breakout.

Market participants estimate the probability of a Federal Reserve rate cut in October at 94.6%.

It is worth noting that, against the backdrop of the recovery of the M2 money supply, XWIN Research analysts have allowed for the possibility of Ethereum rising to $10,000.