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The price of Ethereum shows signs of an exit, as the analyst identified reverse head and shoulder structure a pattern on a long-term 6-month price chart. This bullish formation has fueled predictions that Ethereum may soon cross $12,000, marking new for all time the second largest cryptocurrency by market capitalization.
Ethereum Price Targets $12 With New Chart Pattern
On Tuesday X (formerly Twitter) posted, crypto analyst Tony Severino released Ethereum price chart showing head and shoulder inverse, technical analysis indicator showing a a possible trend reversal. This unique chart pattern has four main parts: the left shoulder, the head, the right shoulder, and the neckline.
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Usually, when the pattern is completely formed, and the cryptocurrency breaks through the throat, it shows the possibility change from a downtrend to an uptrend. In the case of Ethereum, its price has been on a significant downward trend, dropping 8% last week.
Without going out of a top price over $4,000 to below $3,500 recently, Severino remains optimistic about Ethereum’s potential for trend reversals, predicting A bullish price target of $12,000 per top altcoin.
Examining the analyst’s price chart, the left shoulder of the opposite head and shoulder is formed in 2021, while the head appears on time. Ethereum price at the end of 2022, which marks the lowest point of the pattern.
In addition, the right shoulder of the opposite head and shoulder pattern is over, Ethereum recently tested the neckline – the main resistance level with the layered trendline. At that time, Ethereum broke above $3,400which confirms the bullish trend reversal usually associated with this chart pattern.
If you look at the price chart, the distance between the head and the neckline measures about 265.84%, suggesting that Ethereum can meet between $10,000 and $12,000 if the pattern plays out as expected. The downward trending channel of the opposite head and shoulder further supports this bearish view, and Severino’s Ethereum price is almost in line with the channel line.
Ethereum Whale Accumulation Trend Skyrockets
While Ethereum price trading at $3,493 after rising 2.3% in the last 24 hours, analyst known as ‘Mr Crypto’. it was revealed that the whales were on the main shopping street.
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The analyst shared a chart showing the balance of Ethereum in stack addresses. He revealed that Ethereum whales are whales to buy ETH tokens quicklycontinuously increasing their holdings since 2017. A sharp rise in accumulation indicates that investors may be positioning themselves ahead of bullish price action.
The red arrow on the analyst’s chart also shows the large increase in ETH balances in the stack addresses in recent months. Most of the wallets associated with this increasing accumulation saw small outflows, indicating a long-term holding pattern by investors.
The featured image was created with Dall.E, a chart from Tradingview.com
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