- ETH has identified a bullish reversal trend.
- Options data was less optimistic about an ETH breakout ahead of the US election.
Ethereum (ETH) the price has remained resilient amid the raging FUD over the past few months. The largest altcoin gained 12% in its latest rally, moving from $2.3K support to a high of $2.6K.
According to Pierre BrandtETH could explode further amid an inverse head and shoulders pattern – a bullish reversal formation.
Source: Peter Brandt
Can ETH cross $3,000?
In most cases, a breakout above the neckline resistance ($2.7k) in the head and shoulders pattern can reach a target equivalent to the height between the head and neckline.
For ETH, this would mean around $3.3k. The target coincided with the bearish order block (OB) and the resistance level marked in white.
Source: ETH/USDT, TradingView
However, demand for ETH was still very low, which could delay Brandt’s projection. Since the end of September, the Coinbase Premium Index, which measures the appetite of American investors for ETH, has been in negative territory.
Historically, strong US demand tends to coincide with a strong uptrend for ETH. Let it be the last Vitalik Buterin The roadmap for ETH will change market sentiment, remains to be seen.
Source: CryptoQuant
That said, the options market was less optimistic about ETH crossing $3,000 ahead of the US elections in November.
According to Deribit datathere was only an 8.6% chance of ETH reaching $3,000 by the end of October, compared to a 31% chance in November.
In short, options data suggests a higher risk of an ETH breakout after the US elections.
Source: Déribit
