Ethereum blockchain'south native asset, Ether (ETH), faces the prospect of exploding toward $6,500 in the coming sessions.

The bullish analogy takes cues from a textbook technical blueprint dubbed "cup and handle." In detail, a cup and handle structure develops after the price first rallies significantly to the upside so corrects to carve out a rounding bottom, called the "loving cup."

The movement follows a rebound toward the prior loftier and a failed breakout try above the said level. Every bit a result, the cost pulls back once once more and grinds out a smaller rounding bottom, called the "handle."

Ultimately, the price returns to a prior high for the second time and breaks out successfully, resulting in a move equal to the cup'south depth.

So, it seems the ETH/USD exchange rate has painted a cup and is now forming a handle, as is shown in the chart below.

ETH/USD daily chart featuring cup and handle formation. Source: TradingView

The depth of the ETH/USD'southward cup is nearly $ii,437. As a result, should the pair retest $iv,112 resistance for a bullish breakout movement, its prospect of rise by as much as $2,437 will increase. In doing and then, Ether would eye a run-upwardly toward $6,549.

A Harvard study shows that cup-and-handle patterns have a 65% and 68% success rate in forex and stock markets, respectively, on daily timeframe charts.

Institutional FOMO on

Ether's upside analogy appears against the backdrop of growing institutional interest.

In a study published on Sept. 7, Standard Chartered, a multinational banking giant headquartered in London, discussed Ether'south economic use case, calculation that the toll to purchase ane ETH could grow to $26,000–$35,000 in the future.

"The current transition to ETH 2.0 could transform ETH by increasing its functionality and scalability and reducing ecology concerns, although it could heighten more complex security issues," the written report stated.

"Timelines for ETH 2.0 rollout could slip, only in the about term, decreasing net supply — as ETH is staked for ETH 2.0 — should provide toll cushion."

In an interview with CNBC, Cathie Forest, CEO of Ark Invest, said that her house would split its crypto investments into 60% Bitcoin and 40% Ether. The former AllianceBernstein executive envisioned a college need for ETH tokens in the wake of ongoing growth in Ethereum-backed decentralized finance (DeFi) and nonfungible token (NFT) craze.

"I'g fascinated with what's going on in DeFi, which is collapsing the cost of the infrastructure for financial services in a way that I know that the traditional financial industry does non appreciate right now," Forest told CNBC anchor Andrew Ross Sorkin at the SALT 2022 conference in New York.

"Our confidence in Ethereum has gone upwards dramatically as nosotros've seen the kickoff of this transition from proof-of-piece of work to proof-of-stake."

Rivalry risks

Meanwhile, Ethereum besides faced criticism for its disability to resolve higher transaction fees and network congestion issues. That prompted emerging layer-ane blockchain rivals, such as Solana, Avalanche and Cardano, to eat up a portion of Ethereum's market hegemony.

It will take Ethereum another two years to become a fully functional proof-of-stake protocol, per its official roadmap. The transition consists of a three-stride procedure. In the showtime, Ethereum has implemented the Beacon Chain to introduce staking on a split up layer.

Related: Cointelegraph Research: Is Solana an 'Ethereum killer?'

The next step, scheduled sometime later in 2022, will run across Ethereum'south original chain merger with the Beacon Chain. Meanwhile, Ethereum will innovate "shard bondage" that expect to enable Ethereum to process more than transactions in the final phase.

The views and opinions expressed hither are solely those of the author and do non necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you lot should conduct your own research when making a decision.