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ethereum Price Shows Signs of Breakout, As One Analyst Has Identified <a target="_blank" href="https://bitcoinist.com/bitcoin-forms-inverse-head-and-shoulders-pattern/amp/” rel=”nofollow”>formation of a reverse head and shoulder pattern on its 6-month long-term price chart. This bullish formation has fueled predictions that ethereum could soon rise to $12,000, marking a new all-time high for the second largest cryptocurrency by market capitalization.
ethereum Price Targets $12 with New Chart Pattern
In a Tuesday x (formerly twitter) post, cryptoanalyst Tony Severino <a target="_blank" href="https://x.com/tonythebullbtc/status/1871613475086332252?s=46″ rel=”nofollow”>released an ethereum price chart illustrating an inverse head and shoulder, a technical analysis indicator indicating a <a target="_blank" href="https://bitcoinist.com/ethereum-gears-up-for-a-recovery-toward-3659/amp/” rel=”nofollow”>possible trend change. This distinctive chart pattern has four key components: left shoulder, head, right shoulder, and neckline.
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Normally, when the pattern is fully formed and a cryptocurrency breaks through the neckline, it indicates a possible <a target="_blank" href="https://bitcoinist.com/ethereum-to-hit-5-figures-once-it-breaks-yearly-highs-details/amp/” rel=”nofollow”>move from a downtrend to an uptrend. In the case of ethereum, its price has followed a significant downward trajectory, falling more than 8% in the last week.
Despite falling from a high price of more than $4,000 below $3,500 recently, Severino remains bullish on ethereum's potential for a trend reversal, predicting a bullish target price of $12,000 for the main altcoin.
Examining the analyst price chart, the left shoulder of the inverse head and shoulder formed in 2021, while the head emerged during The drop in the price of ethereum at the end of 2022, marking the lowest point of the pattern.
Furthermore, the right shoulder of the inverse head and shoulders pattern is complete, and ethereum recently tested the neckline, a key resistance level adjacent to a horizontal trend line. At the moment, ethereum surpassed $3,400confirming the reversal of the uptrend often associated with this chart pattern.
Looking at the price chart, the distance between the head and the neckline measures approximately 265.84%, suggesting that ethereum could rally between $10,000 and $12,000 if the pattern develops as expected. The upward-sloping channel of the inverse head and shoulder further supports this uptrend outlook, and Severino's ethereum price target likely aligns with the path of the channel.
ethereum Whale Accumulation Trend Soars
While the price of ethereum is trading at $3,493 after rising 2.3% in the last 24 hours, an analyst known as 'Mister crypto' <a target="_blank" href="https://x.com/misterrcrypto/status/1871601984593154291?s=46″ rel=”nofollow”>revealed that the whales have been on a big buying spree.
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The analyst shared a chart illustrating the ethereum balance in accumulation addresses. Revealed that ethereum whales are buying eth tokens exponentiallysteadily increasing its holdings since 2017. The sharp rise in accumulation suggests investors are potentially positioning themselves ahead of bullish price action.
The red arrow on the analyst chart also shows a significant increase in the eth balance in accumulation directions over the past few months. Most portfolios associated with this growing accumulation have seen minor outflows, indicating long-term holding behavior by investors.
Featured image created with Dall.E, chart from Tradingview.com
