Este artículo también está disponible en español.
Ethereum Price Poised for Breakout with New Chart Pattern
Ethereum’s price action has recently garnered attention as analysts have identified a promising inverse head and shoulder pattern on its long-term 6-month price chart. This bullish chart formation has sparked speculations and predictions that Ethereum might surge to an impressive $12,000, setting a new all-time high for the second-largest cryptocurrency by market capitalization.
Understanding the Inverse Head and Shoulder Pattern
In a recent post on X (formerly Twitter), crypto analyst Tony Severino shared insights into Ethereum’s price chart, showcasing the inverse head and shoulder pattern. This technical analysis indicator is known for signaling potential trend reversals and comprises four essential components: a left shoulder, a head, a right shoulder, and a neckline.
Potential Shift from Downtrend to Uptrend
When this pattern is fully formed, and a cryptocurrency successfully breaks through the neckline, it often indicates a transition from a downtrend to an uptrend. Despite experiencing a significant downturn of over 8% in the past week, Severino remains optimistic, projecting a bullish price target of $12,000 for Ethereum.
Historical Context of the Pattern Formation
Examining the historical context, the left shoulder of the inverse head and shoulder pattern developed in 2021, while the head emerged during Ethereum’s price crash at the end of 2022, marking the lowest point in the pattern. Recently, the right shoulder was completed, with Ethereum testing the neckline, a crucial resistance level signified by a horizontal trendline.
Chart Analysis and Price Projections
Currently, Ethereum has broken above $3,400, affirming the bullish trend reversal typically associated with this pattern. The distance between the head and the neckline measures approximately 265.84%, pointing towards a potential rally between $10,000 and $12,000 if the pattern unfolds as anticipated. The upward-sloping channel further supports this bullish outlook, aligning with Severino’s price target trajectory.
Ethereum Whale Accumulation: A Bullish Indicator
As Ethereum’s price trades at $3,493, marking a 2.3% increase in the past 24 hours, another significant trend has emerged. Analyst ‘Mister Crypto’ has highlighted a substantial buying spree by Ethereum whales, who are steadily increasing their holdings.
Whale Accumulation Trends and Implications
The analyst’s chart reveals Ethereum’s balance on accumulation addresses, showing that whales are purchasing ETH tokens at an exponential rate since 2017. This sharp rise in accumulation suggests that large investors are positioning themselves strategically ahead of a potential bullish price movement.
Long-Term Holding Behavior
Furthermore, the analyst’s chart, marked by a red arrow, indicates a notable spike in the ETH balance on accumulation addresses in recent months. Most wallets linked to this accumulation trend have experienced minor outflows, signifying a long-term holding behavior by investors, which reinforces confidence in Ethereum’s future growth potential.
