Dado Ruvic/Reuters

Ether surged 6% to record highs on Tuesday, and the rally could continue after a key resistance level was broken, according to technical analyst Katie Stockton of Fairlead Strategies.

Ether's prior high at $2,500 was overwhelmed by buyers on Tuesday, and a measured move price projection of $3,020 is within reach, according to Stockton. That price objective represents potential upside of 14% from Tuesday afternoon levels.

The move in ether to record highs comes after a volatile week for bitcoin, which fell more than 20% to below $50,000 before surging more than 10% to about $55,000. Bitcoin traded at a record high near $65,000 earlier this month amid the Coinbase IPO.

Ether has upheld positive intermediate-term momentum even as bitcoin broke down, and long-term momentum remains bullish for the cryptocurrency, according to Stockton.

"The breakout from earlier this month dictates a bullish bias beyond the coming weeks, having yielded a measured move projection of ~$3,000," Stockton said.

But the breakout in ether needs to be confirmed by consecutive daily closes above $2,550, according to Stockton.

If ether's breakout fails to hold, it can "follow the lead of bitcoin and test its 50-day moving average, which would also mark a test of its breakout point," Stockton said. Ether's 50-day moving average currently sits at $2,027, representing potential downside of 23% from current levels.

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