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The Ethereum price is displaying indications of a potential breakout, with an analyst identifying the formation of an inverse head and shoulder pattern on its 6-month long-term price chart. This bullish pattern has sparked speculation that Ethereum could surge to $12,000 soon, marking a new all-time high for the second-largest cryptocurrency by market capitalization.
Ethereum Price Targets $12 With New Chart Pattern
In a recent X (formerly Twitter) post, crypto analyst Tony Severino unveiled an Ethereum price chart showcasing an inverse head and shoulder, a technical analysis indicator signaling a possible trend reversal. This distinctive chart pattern consists of four key components: a left shoulder, head, right shoulder, and neckline.
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Typically, when the pattern is fully formed and a cryptocurrency breaks above the neckline, it indicates a potential shift from a downtrend to an uptrend. Ethereum has experienced a significant downward trend recently, with a decline of over 8% in the past week.
Despite a drop from a price high of over $4,000 to below $3,500, Severino remains optimistic about Ethereum’s potential for a trend reversal, with a bullish price target of $12,000 for the leading altcoin.
Upon analyzing the analyst’s price chart, the left shoulder of the inverse head and shoulder was formed in 2021, while the head emerged during Ethereum’s price crash at the end of 2022, marking the pattern’s lowest point.
Additionally, the right shoulder of the inverse head and shoulder pattern is now complete, with Ethereum recently testing the neckline—a crucial resistance level defined by a horizontal trendline. Ethereum broke above $3,400 at that time, confirming the bullish trend reversal often associated with this chart pattern.
The distance between the head and the neckline on the price chart measures approximately 265.84%, suggesting that Ethereum could rally between $10,000 and $12,000 if the pattern unfolds as expected. The upward-sloping channel of the inverse head and shoulder pattern further supports this optimistic trend outlook, with Severino’s Ethereum price target likely aligning with the channel’s trajectory.
Ethereum Whale Accumulation Trend Skyrockets
While the Ethereum price is currently at $3,493 following a 2.3% surge in the past 24 hours, an analyst known as ‘Mister Crypto’ disclosed that whales have been actively accumulating.
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The analyst shared a chart illustrating Ethereum’s balance on accumulation addresses, revealing that Ethereum whales are acquiring ETH tokens at an increasing rate, steadily growing their holdings since 2017. The significant rise in accumulation indicates that investors may be positioning themselves for a potential bullish price movement.
The analyst’s chart also indicates a sharp increase in ETH balance on accumulation addresses in recent months, with most wallets associated with this surge in accumulation experiencing minor outflows, suggesting a long-term holding strategy by investors.
Featured image created with Dall.E, chart from Tradingview.com