Is ETH about to finally surpass $2.6K?

ethereum is in a crucial phase, with an inverted head and shoulders pattern forming on the daily chart and a double bottom pattern on the 4-hour chart, both pointing to the possibility of a slight bullish reversal.

The $2,700 neckline and the $2,100 support level will be key areas to watch as a breakout or breakout will determine the next major direction.

By shayan

The daily chart

ethereum is going through a downward consolidation phase, with no clear directional bias emerging recently. However, a major inverted head and shoulders pattern has formed near the $2.1K support zone, a critical level where buyers have managed to hold firm.

This pattern is usually a bullish reversal signal, suggesting that there may be a shift towards bullish momentum on the horizon, particularly if eth can break above the neckline, which is around $2,700.

ethereum has roughly regained the midpoint of the multi-month channel, which sits around $2,500. If this breakout turns out to be valid, the next focus of buyers will shift towards the neckline of the inverted head and shoulders pattern at $2,700. A breakout at this level could solidify a bullish reversal, potentially targeting the $3,000 resistance zone in the near term.

The 4 hour chart

On the 4-hour chart, ethereum sellers have had a difficult time pushing the price below the lower boundary of the ascending flag pattern, which sits near $2,300. This dynamic support level has been tested several times, and a break here could trigger a prolonged compression event, sending the price quickly towards the $2,100 support region. However, ethereum has also formed a double bottom pattern in this time frame, which typically indicates a short-term bullish reversal.

The price is currently confined between the ascending flag support and a critical resistance zone defined by the 0.5 Fibonacci level at $2.6 thousand and the 0.618 Fibonacci level at $2.8 thousand. ethereum is likely to continue consolidating within this tight range until a decisive breakout occurs, either up or down.

By shayan

ethereum is currently stuck within a price range between $2.1k and $2.7k, and a close look at Binance's liquidation heatmap reveals key liquidity zones that could influence an imminent breakout. The heat map shows regions of concentrated liquidity, such as stop-loss orders and liquidation levels, which are predominantly driven by larger market participants, including whales.

The cryptocurrency is facing a period of slight consolidation with minimal volatility, reflecting the balance between buyers and sellers. On the downside, the $2,000 region is heavily defended by whales and institutional traders, as evidenced by the significant liquidity pools concentrated in this area. On the other hand, the $2,800 resistance zone represents a formidable barrier as it contains a significant amount of liquidity.

This concentration of liquidity suggests that many traders, particularly large ones, have placed their settlement points around this price level, making it critical. A breakout in either direction could lead to a cascade of liquidations, triggering a chain reaction of stop-loss orders and liquidations that could amplify the prevailing trend.

<!– ai CONTENT END 1 –>