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Ethereum price is showing signs of a breakout, as identified by an analyst Inverted head and shoulder formation On a 6-month long term price chart. This bullish formation has fueled expectations that Ethereum could rise to $12,000 soon, marking a significant milestone. New all-time high For the second largest cryptocurrency by market capitalization.
Ethereum price targets $12 with new chart pattern
In a post on Tuesday X (formerly Twitter), cryptocurrency analyst Tony Severino said Released Ethereum price chart showing the inverted head and shoulder, a technical analysis indicator that indicates a Possible trend reversal. This distinctive chart pattern has four main components: the left shoulder, the head, the right shoulder, and the neckline.
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Usually, when the pattern is fully formed, and the cryptocurrency breaks the neckline, this indicates a possibility Shifting from a downtrend to an uptrend. In the case of Ethereum, its price has been on a major downward trajectory, falling by more than 8% in the past week.
Despite his fall from A High price over $4000 To below $3,500 recently, Severino remains optimistic about the possibility of a trend reversal in Ethereum, anticipating a decline. Upside price target $12,000 worth of the best altcoin.
By examining the analyst’s price chart, we find that the left shoulder of the head and the inverse shoulder were formed in 2021, while the head appeared during Ethereum price collapse At the end of 2022, marking the lowest point in the model.
Additionally, the right shoulder of an inverse head and shoulders pattern has completed, as Ethereum recently tested the neckline – a key resistance level by a horizontal trend line. at that time, Ethereum price crossed the $3,400 levelThis confirms the bullish trend reversal often associated with this chart pattern.
Looking at the price chart, the distance between the head and the neckline is about 265.84%, which indicates that Ethereum could rise between $10,000 and $12,000 if the pattern goes as expected. An upward sloping channel of an inverse head and shoulder supports this upside outlook, with Severino’s Ethereum price target potentially in line with the channel’s path.
The Ethereum whale accumulation trend is rising dramatically
while Ethereum price It is trading at $3,493 after rising 2.3% in the past 24 hours, according to the analyst known as “Mister Crypto.” open The whales were on a huge buying spree.
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The analyst shared a chart showing the balance of Ethereum on accumulator addresses. He revealed that Ethereum whales exist Buy ETH tokens in bulkwhich has been steadily increasing their holdings since 2017. The sharp rise in accumulation suggests that investors are likely positioning themselves ahead of upward price action.
The red arrow in the analyst chart also shows a significant rise in ETH balance on accumulator addresses in recent months. Most portfolios associated with this increased accumulation have experienced minor outflows, indicating long-term holding behavior by investors.
Featured image created with Dall.E, chart from Tradingview.com