Pepe Coin Surges Amid Strong Ethereum Correlation and Rising Ether Burns

Pepe Coin Surges Amid Strong Ethereum Correlation and Rising Ether Burns

Pepe Coin price has reentered investors’ radar as the meme coin has turned bullish over the last few weeks. Reacting to Ethereum’s price movement, PEPE broke out of a bullish continuation pattern, with a retest confirming the breakout. The PEPE-ETH correlation suggests that rising Ether burns could potentially trigger a price surge for Pepe Coin.

Ether Burns Surge as Pepe Coin Rallies

Recent data from LookonChain indicates a significant increase in the daily Ether (ETH) burn rate over the past week. Historically, a rising burn rate has aligned with upward price movements for Ethereum. The latest burn rate spike has even surpassed June’s peak, excluding the unusual spike witnessed in August.

This trend is particularly noteworthy for Pepe Coin investors due to the strong historical correlation between PEPE and ETH. According to IntoTheBlock, PEPE’s 60-day correlation with Ethereum currently stands at 0.92, higher than its 0.84 correlation with Bitcoin, and up slightly from 0.91 in June. Correlation values range from -1 to +1, with a reading near +1 indicating that prices of the two assets tend to move in the same direction. Given this high correlation, a continued rise in Ethereum’s price could likely push PEPE higher as well.

Over the past 24 hours, PEPE has gained 7%, with its price currently sitting at $0.000009.

PEPE Technical Analysis: $0.00001250 Target

Pepe Coin is currently in a recovery phase after a recent downtrend, displaying a bullish breakout from an ascending triangle pattern. The breakout above key resistance levels indicates the potential for further upward momentum, with the next major resistance target sitting around $0.00001269.

In the event of a pullback, PEPE could find support around the $0.00000080 and $0.00000070 levels. The ascending triangle pattern is a continuation formation, and its breakout signals a potential price increase. Based on the pattern’s height, the next target price could reach around $0.00001269, representing a potential 45.15% gain from the current breakout level.

However, if the price drops below $0.00000080, it could signal market weakness, turning the trend bearish. In that case, PEPE’s price may find lower support near $0.00000070.