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Ethereum Price Targets $12 With New Chart Pattern
Introduction
The Ethereum price is showing signs of a breakout, as analysts have identified the formation of an inverse head and shoulder pattern on its 6-month long-term price chart. This bullish formation has fueled predictions that Ethereum could rally to $12,000 soon, marking a new all-time high for the second-largest cryptocurrency by market capitalization.
Inverse Head and Shoulder Pattern
In a recent X (formerly Twitter) post, crypto analyst Tony Severino released an Ethereum price chart illustrating an inverse head and shoulder, a technical analysis indicator signaling a potential trend reversal. This distinctive chart pattern has four key components: a left shoulder, head, right shoulder, and neckline. Typically, when the pattern is completely formed, and a cryptocurrency breaks through the neckline, it indicates a potential shift from a downtrend to an uptrend.
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Ethereum Price Targets $12 With New Chart Pattern
Ethereum Price Chart
The Ethereum price has been on a significant downward trajectory, declining by over 8% in the past week. Despite dropping from a price high of over $4,000 to below $3,500 recently, Severino remains optimistic about Ethereum’s potential for a trend reversal, predicting a bullish price target of $12,000 for the top altcoin.
Examining the Pattern
The left shoulder of the inverse head and shoulder was formed in 2021, while the head emerged during Ethereum’s price crash at the end of 2022, marking the lowest point in the pattern. The right shoulder of the inverse head and shoulder pattern is complete, with Ethereum recently testing the neckline – a key resistance level by a horizontal trendline.
Looking Ahead
The distance between the head and the neckline measures approximately 265.84%, suggesting 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 likely aligning with the channel’s trajectory.
Ethereum Whale Accumulation Trend Skyrockets
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Ethereum Price Chart
While the Ethereum price is trading at $3,493 after surging by 2.3% in the past 24 hours, an analyst known as ‘Mister Crypto’ revealed that whales have been on a major buying spree.
Conclusion
The Ethereum price is poised to break out of its recent downtrend, with analysts predicting a potential shift to an uptrend. The formation of an inverse head and shoulder pattern on the 6-month long-term price chart is a strong indication of a potential trend reversal, with a bullish price target of $12,000 for the top altcoin.
FAQs
Q: What is an inverse head and shoulder pattern?
A: An inverse head and shoulder pattern is a technical analysis indicator that signals a potential trend reversal. It consists of four key components: a left shoulder, head, right shoulder, and neckline.
Q: What is the significance of the neckline in an inverse head and shoulder pattern?
A: The neckline is a key resistance level in an inverse head and shoulder pattern. When a cryptocurrency breaks through the neckline, it typically indicates a potential shift from a downtrend to an uptrend.
Q: What is the distance between the head and the neckline in the Ethereum price chart?
A: The distance between the head and the neckline measures approximately 265.84%, suggesting that Ethereum could rally between $10,000 and $12,000 if the pattern plays out as expected.
