The price of Ethereum started the new week in extending last week’s gainswhich started after reclaiming support at $2,350. This run has seen the price of Ethereum now pushing towards resistance at $2,800which bulls hope to break before the week is over.
In light of Ethereum’s recent price change, a crypto analyst noted that the leading altcoin is gearing up for a massive move and things are about to get interesting.
Things are about to get interesting with the price of Ethereum
According to the analyst, known as @IamCryptoWolf on the social media platform
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THE the forecast is based in an analysis of Ethereum’s price action against the US Dollar (ETH/USD) on a 3-day candlestick period, where the analyst identified the formation of an inverse head and shoulders pattern.
This inverse head and shoulders pattern is considered a powerful reversal signal in technical analysis, indicating a transition from a downtrend to an uptrend. The pattern consists of three distinct single crochets: the left shoulder, the head, and the right shoulder.
The head forms the deeper lower part, while the two shoulders are smaller lower ones. The neckline, connecting the peaks between the shoulders, acts as a critical level of resistance. Once price action passes this neckline decisively, it often triggers an increase in bullish momentum.
In the case of Ethereum, the analyst identified this gap at approximately US$2,800. Ethereum has recently trended higher towards this level, suggesting a breakout may be near.
In terms of a breakout target, the analyst pointed to the $3,400 level as the first key price zone to watch. Breaking the $3,400 level would open the way for Ethereum to retest its yearly high above $3,920 toward $4,000 and likely even create a new one.
The $3,400 and $3,920 price targets represent increases of 25% and 45%, respectively, from the current Ethereum price.
Ethereum and the broader market context
Ethereum price performance in 2024 is closely linked to general market conditions, particularly Bitcoin movements. Many large market cap cryptocurrencies started the week with gains as many bullish traders look to continue last week’s momentum.
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Ethereum price surpassed $2,700 for the first time in October during this weekend, so many addresses crossed over to the long-term participation cohortfurther increasing the bullish sentiment. At the time of writing, Ethereum is trading at $2,720 and is up 2.83% in the last 24 hours.
As things stand, the next few days could be crucial for the rest of the year, with Ethereum potentially gearing up 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