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Ethereum price started the new week with extending last week’s gainswhich started after bouncing off the support at $2,350. This run saw the price of Ethereum now push towards resistance at $2,800which the bulls are eager to break before the end of the week.
In light of Ethereum’s recent price action, one 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 Ethereum price
According to the analyst, known as @IamCryptoWolf on social media platform point of becoming interesting.
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THE the prediction is based on an analysis of the price action of Ethereum against the US Dollar (ETH/USD) over a 3-day candlestick period, where the analyst identified the formation of an inverse head and shoulders pattern.
This inverted 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 basses: the left shoulder, the headstock, and the right shoulder.
The head forms the deepest hollow, while the two shoulders are smaller hollows. The neckline, connecting the peaks between the shoulders, acts as a critical resistance level. Once price action decisively moves above this neckline, it often triggers a burst of bullish momentum.
In the case of Ethereum, the analyst identified this neckline at around $2,800. Ethereum has recently seen an upward trend towards this level, suggesting that a breakout may be near.
In terms of a breakout target, the analyst named the $3,400 level as the first key price zone to watch. Breaking out from the $3,400 level would pave the way for Ethereum to retest its yearly high above $3,920 towards $4,000 and likely even create a new one.
The price targets of $3,400 and $3,920 represent increases of 25% and 45%, respectively, from the current Ethereum price.
Ethereum and the broader market context
Ethereum’s price performance in 2024 has been closely tied to overall market conditions, especially 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 over this weekend, as many addresses integrated into long-term detention cohortfurther increasing 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 preparing for a significant rise above $2,800, which would make things “about to get interesting “.
Featured image created with Dall.E, chart from Tradingview.com
