The Ethereum price started the new week by extending last week’s gains, which kicked off after it bounced off support at $2,350. This run has seen the Ethereum price now pushing towards resistance at $2,800, which the bulls look forward to breaking before the week runs out.
In light of the recent Ethereum price move, a crypto analyst has 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 Ethereum Price
According to the analyst, known as @IamCryptoWolf on social media platform X, the current market conditions and technical setup suggest that Ethereum could be gearing up for a significant breakout, hinting that “things are about to get interesting.
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The prediction is based on an analysis of Ethereum’s price action against the US dollar (ETH/USD) on a 3-day candlestick timeframe, where the analyst has 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 lows: the left shoulder, the head, and the right shoulder.
The head forms the deepest low, while the two shoulders are smaller lows. The neckline, connecting the peaks between the shoulders, acts as a critical resistance level. Once price action breaks above this neckline decisevely, it often sparks a surge in bullish momentum.
In the case of Ethereum, the analyst identified this neckline at approximately $2,800. Ethereum has recently been trending upwards toward this level, suggesting that a breakout may be close.
In terms of a breakout target, the analyst pointed to the $3,400 level as the first key price zone to watch. Breaking out of the $3,400 level would open up the path to Ethereum retesting its yearly high above $3,920 towards $4,000 and probably even creating a new one.
The $3,400 and $3,920 price targets represent 25% and 45% increases, respectively, from the current price of Ethereum.
Ethereum And The Broader Market Context
The Ethereum price performance in 2024 has been closely tied to the overall market conditions, particularly Bitcoin’s movements. Many large market cap cryptocurrencies have started the week with gains, as many bullish traders look to continue on last week’s momentum.
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The Ethereum price broke above $2,700 for the first time in October during this weekend as many addresses crossed into the long-term holding cohort, further increasing the bullish sentiment. At the time of writing, Ethereum is trading at $2,720 and is up by 2.83% in the past 24 hours.
As things stand, the coming days could be pivotal 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