The Ethereum price has been on a positive trajectory as it extends last week’s gains, starting the new week with momentum after bouncing off support at $2,350. Currently, the price is approaching the resistance level at $2,800, with bulls eagerly anticipating a breakout before the week concludes.
A crypto analyst, known as @IamCryptoWolf on social media platform X, has highlighted that Ethereum is gearing up for a significant move, suggesting that things are about to get interesting. The analysis is based on Ethereum’s price action against the US dollar on a 3-day candlestick timeframe, where an inverse head and shoulders pattern has been identified.
The inverse head and shoulders pattern is a powerful reversal signal in technical analysis, indicating a shift from a downtrend to an uptrend. With the neckline identified at around $2,800, a breakout above this level could trigger a surge in bullish momentum. The analyst has set a breakout target at $3,400, with further potential for Ethereum to retest its yearly high above $3,920 and even reach $4,000.
The performance of Ethereum in 2024 has been closely linked to overall market conditions, particularly influenced by Bitcoin’s movements. Several large-cap cryptocurrencies have seen gains at the start of the week, building on last week’s positive momentum. Ethereum recently surpassed $2,700 for the first time in October, with many addresses moving into long-term holding, further fueling bullish sentiment.
As Ethereum continues to trade around $2,720, up by 2.83% in the past 24 hours, the upcoming days could be crucial for the cryptocurrency’s trajectory for the rest of the year. With the potential for a significant upward move above $2,800, Ethereum is indeed at an exciting juncture.
The article also includes a Tradingview chart showing ETH price struggling to break the $2,700 resistance level successfully, illustrating the current market dynamics. With Ethereum poised for a potential breakout, the cryptocurrency market is eagerly anticipating further developments in the coming days.