The Ethereum price is showing promising signs of a breakout, with analysts identifying an inverse head and shoulder pattern on its long-term price chart. This bullish formation has led to predictions that Ethereum could rally to $12,000, marking a new all-time high for the second-largest cryptocurrency by market capitalization. Tony Severino, a crypto analyst, highlighted the formation of the inverse head and shoulder pattern on Ethereum’s price chart, signaling a potential trend reversal. This pattern consists of a left shoulder, head, right shoulder, and neckline. Typically, when a cryptocurrency breaks through the neckline of this pattern, it indicates a shift from a downtrend to an uptrend. Despite a recent decline in Ethereum’s price, Severino remains optimistic about its potential for a bullish trend reversal, targeting $12,000 for the top altcoin.
The left shoulder and head of the inverse head and shoulder pattern on Ethereum’s chart were formed in 2021 and during a price crash at the end of 2022, respectively. The right shoulder is now complete, with Ethereum testing the neckline, a key resistance level marked by a horizontal trendline. Ethereum recently broke above $3,400, confirming the bullish trend reversal often associated with this pattern. The distance between the head and the neckline suggests that Ethereum could rally between $10,000 and $12,000 if the pattern plays out as expected. The upward-sloping channel of the inverse head and shoulder further supports this bullish trend outlook, with Severino’s Ethereum price target aligning with the channel’s trajectory.
Meanwhile, as the Ethereum price trades at $3,493, an analyst named ‘Mister Crypto’ revealed that whales have been actively accumulating Ethereum tokens. He shared a chart illustrating the balance on accumulation addresses, showing a significant increase in ETH holdings by whales since 2017. This surge in accumulation suggests that investors are positioning themselves for a potentially bullish price action. The chart also indicates a major spike in ETH balance on accumulation addresses in recent months, with most wallets associated with this accumulation showing minor outflows, signaling a long-term holding behavior by investors.
Overall, the combination of the inverse head and shoulder pattern on Ethereum’s price chart and the increased accumulation of ETH by whales point towards a bullish outlook for the cryptocurrency. With price targets of $12,000 and potential rallies to new all-time highs, Ethereum investors and traders are closely monitoring these developments for potential trend reversals and profitable opportunities in the market. As the cryptocurrency landscape continues to evolve and adapt, Ethereum remains a key player with significant growth potential in the months ahead.
