Ethereum price is showing signs of a breakout, as one analyst has identified Reverse head and shoulders formation Its 6-month long-term price chart pattern. This bullish formation fueled predictions that Ethereum could soon rise to $12,000, a bullish sign. 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 by X (formerly Twitter), cryptocurrency analyst Tony Severino was published An ethereum price chart that shows a head and shoulder reversal, a technical analysis indicator that signals Potential trend reversal. This distinctive chart pattern has four key components: the left shoulder, the head, the right shoulder, and the neckline.
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Typically, when the pattern is fully formed, and a cryptocurrency breaks through the neckline, it indicates a potential. A change from a downtrend to an uptrend. As for Ethereum, its price has been on a significant downtrend, dropping more than 8% in the past week.
Despite falling from A Price above 4000 dollars Having recently dipped below $3,500, Severino is bullish on Ethereum's potential to turn the tide, predicting Bullish price target $12,000 for the top altcoin.
Looking at the analyst's price chart, the left shoulder of the head and reverse shoulder was formed in 2021, while the head during Ethereum price crash At the end of 2022, it represents the lowest point of the pattern.
Additionally, the right shoulder of the head and shoulder reversal pattern has been completed, Ethereum has recently tested the neckline – a key resistance level by a horizontal trend line. at that time, Ethereum rose above $3400is a reversal confirmation of the uptrend that is often associated with this chart pattern.
Looking at the price chart, the gap between the head and the neckline is approximately 265.84%, suggesting that if the expected pattern plays out, Ethereum could rise between $10,000 and $12,000. A steep inverted head and shoulder channel further supports this bullish outlook, with Ethereum Severino's price target possibly matching the channel path.
Ethereum whale accumulation trend has skyrocketed
While Ethereum price An analyst known as “Mr. Crypto” is trading at $3,493 after gaining 2.3% in the last 24 hours. revealed that whales have been the main purchase.
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The analyst shared a chart showing Ethereum's balance of stack addresses. He revealed that the whales are ethereum Buy ETH tokens exponentiallySince 2017, they have been steadily increasing their assets. A sharp increase in accumulation indicates that investors are potentially on the verge of a bullish price action.
The red arrow on the analyst chart also shows a big jump in the ETH balance in the stack addresses in recent months. Most of the wallets associated with this growing accumulation have had minor outflows, indicating the long-term holding behavior of investors.
Featured image created with Dall.E, chart from Tradingview.com
