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Ethereum price has started the new week Extending last week’s gainswhich took off after it bounced from support at $2,350. This range has seen the price of Ethereum now It rushes towards the resistance at $2,800which the bulls are looking to break before the week runs out.
In light of the recent Ethereum price move, one cryptocurrency analyst noted that the leading altcoin is poised for a massive move, and things are about to get interesting.
Things are about to get interesting with the Ethereum price
According to the analyst, known as @IamCryptoWolf on social media platform
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the Prediction depends Based on an analysis of the price movement of Ethereum against the US Dollar (ETH/USD) on a 3-day candlestick time frame, the analyst identified the formation of an inverse head and shoulders pattern.
This inverse head and shoulders pattern is considered a strong reversal signal in technical analysis, indicating a transition from a bearish trend to a bullish trend. The pattern consists of three distinct bottoms: the left shoulder, the head, and the right shoulder.
The head forms the deepest bottom, while the shoulders form smaller bottoms. The neckline, which connects the peaks between the shoulders, acts as a critical resistance level. Once price action breaks above this neckline decisively, it often sparks a surge in upward momentum.
In the case of Ethereum, the analyst has identified this neckline at around $2,800. Ethereum has recently been trending upwards towards this level, indicating that a breakout could be imminent.
Regarding the breakout target, the analyst pointed to the $3,400 level as the first major price area to watch. A break out of the $3,400 level would open the way for Ethereum to retest the yearly high above $3,920 towards $4,000 and perhaps even create a new high.
Target prices of $3,400 and $3,920 represent an increase of 25% and 45%, respectively, from Ethereum’s current price.
Ethereum and the broader market context
Ethereum’s price performance in 2024 has been closely linked to general market conditions, Especially Bitcoin movements. Several large-cap cryptocurrencies started the week with gains, with many bullish traders looking to continue last week’s momentum.
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Ethereum price surpassed $2,700 for the first time in October during this weekend like many headlines Crossed over to long-term holding groupwhich increases bullish sentiment. At the time of writing, Ethereum is trading at $2,720 and is up 2.83% over the past 24 hours.
As things stand, the coming days could be pivotal for the rest of the year, with Ethereum potentially poised for a significant upward move above $2,800, making things “about to get interesting” indeed.
Featured image created with Dall.E, chart from Tradingview.com