.jpg)
Ethereum (ETH) crossed local resistance at the $3,670 price level earlier today, reviving hopes of a successful breakout of the ongoing $4,000 resistance level. Some cryptocurrency experts are optimistic that ETH may finally be the same ready To reach all-time highs (ATH).
Does Ethereum benefit from the inverse head and shoulders pattern?
Ethereum, the second-largest digital asset with a market capitalization of over $450 billion, appears poised to target the critical $4,000 resistance level once again. For context, ETH has tested the $4,000 level three times since March 2024, failing to break it each time.
According to veteran cryptocurrency analyst and trader Trader_XO, the fourth attempt may finally succeed. The analyst shared his thoughts on
The Trader_XO analysis included a chart indicating the formation of a reversal head and shoulders pattern. For those unfamiliar, this bullish chart formation indicates a potential downtrend reversal. It consists of three bottoms: a lower bottom – the “head” – between higher bottoms – the “shoulders”.
A breakout usually occurs when the price crosses the “neckline” that connects the highs between the lows. In the case of Ethereum, the neckline is located around the $4,000 price level. An eventual break above $4,000, followed by a successful retest of this level as new support, could position ETH to pursue new ATHs in the near future.
Trader_XO’s analysis is consistent with that of another cryptocurrency analyst, Daghan, who suggested that a new ATH for ETH could pave the way for a rally as high as $8,047. The analyst noted:
Ethereum It needs to cross the $4,150 level for the real fun to begin. Nothing has really started yet. This is a continuation model that will likely lead to strong motivation, but it takes time to fully develop.
Other technical indicators are bullish for ETH
In addition to the reversal head and shoulders pattern, cryptocurrency analyst Ali Martinez highlighted that Ethereum is “holding strong” within an ascending parallel channel, targeting the $6,000 price level.
To clarify, an ascending parallel channel is a bullish chart pattern characterized by two parallel, upward-sloping trend lines containing price action. This pattern reflects consistent higher highs and lower lows, indicating a steady uptrend with potential breakouts above or below the channel.
In addition to a recent report male Ethereum’s weekly Relative Strength Index (RSI) has reset, which could provide more momentum for ETH It consolidates New furniture. At press time, Ethereum is trading at $3,696, up 1.9% over the past 24 hours.
Featured image from Unsplash.com, charts from X and TradingView.com
