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Ethereum Price Shows Signs of Breakout as Analyst Identifies the formation of an inverted head and shoulder model on its long-term 6-month price chart. This bullish formation has fueled predictions that Ethereum could soon reach $12,000, marking a new absolute record for the second largest cryptocurrency by market capitalization.
Ethereum Price Targets $12 With New Chart Pattern
In an article from Tuesday X (formerly Twitter), crypto analyst Tony Severino released an Ethereum price chart depicting an inverted head and shoulders, a technical analysis indicator signaling a potential trend reversal. This distinctive graphic design features four key elements: a left shoulder, a head, a right shoulder and a neckline.
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Typically, when the pattern is fully formed and a cryptocurrency breaks above the neckline, it indicates potential move from a downtrend to an uptrend. In the case of Ethereum, its price has been on a significant downward trajectory, falling more than 8% in the past week.
Despite a fall of a high price of over $4,000 below $3,500 recently, Severino remains optimistic about Ethereum’s trend reversal potential, predicting a bullish price target of $12,000 for the best altcoin.
Looking at the analyst’s price chart, the left shoulder of the inverse head and shoulder has formed in 2021, while the head has emerged during Ethereum Price Fall at the end of 2022, marking the lowest point of the trend.
Additionally, the right shoulder of the inverted head and shoulders pattern is complete, with Ethereum recently testing the neckline – a key resistance level by a horizontal trendline. At the time, Ethereum surpassed $3,400confirming the bullish trend reversal often associated with this chart configuration.
Looking at the price chart, the distance between the head and neckline measures approximately 265.84%, suggesting that Ethereum could bounce back to between $10,000 and $12,000 if the trend plays out as expected. The ascending inverse head and shoulders channel further supports this uptrend outlook, with Severino’s Ethereum price target likely aligning with the channel’s trajectory.
Ethereum Whale Accumulation Trend Soars
While the price of Ethereum is trading at $3,493 after jumping 2.3% in the past 24 hours, according to an analyst known as “Mister Crypto.” revealed that the whales went on a big buying frenzy.
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The analyst shared a chart depicting Ethereum’s balance on accumulation addresses. He revealed that Ethereum whales are buy ETH tokens exponentiallysteadily increasing their holdings since 2017. The sharp increase in accumulation suggests that investors are potentially positioning themselves in anticipation of bullish price action.
The red arrow in the analyst’s chart also shows a significant increase in ETH balance on accumulation addresses over the past few months. Most portfolios associated with this growing accumulation experienced minor outflows, signaling long-term holding behavior on the part of investors.
Featured image created with Dall.E, chart from Tradingview.com
