Ethereum Price Prediction: Inverse Head And Shoulders Pattern Says ETH Will Touch $12,000

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As a seasoned crypto investor with a decade of experience under my belt, I must admit that the recent bullish forecast for Ethereum is nothing short of intriguing. Having witnessed several market cycles and chart patterns, I can’t help but be captivated by the inverse head and shoulder pattern identified by analyst Tony Severino.

The cost of Ethereum appears to be indicating a potential surge, as an expert has spotted a reverse head and shoulder configuration in its 6-month chart. This optimistic pattern suggests that Ethereum might soar to $12,000 in the near future, setting a new record high for the cryptocurrency with the second-largest market capitalization.

Ethereum Price Targets $12 With New Chart Pattern

On Tuesday, cryptocurrency expert Tony Severino shared via a post on the platform X (previously known as Twitter) an Ethereum price graph showing an inverted head and shoulders formation. This technical analysis tool suggests a possible shift in trend direction. The unique pattern consists of four main elements: a left shoulder, a head, a right shoulder, and a neckline.

Normally, when a cryptocurrency’s pattern is fully developed and it surpasses the resistance line (neckline), it could suggest a possible change from a falling trend to a rising one. For Ethereum, its value has been dropping substantially, decreasing by more than 8% in just the past week.

As a crypto investor, I may have seen Ethereum’s price dip from its peak above $4,000 down to below $3,500, but my optimism about its future remains unshaken. I am confidently forecasting a bullish turn and setting a price target of $12,000 for this top altcoin.

By looking at the analyst’s graph, we can see that the left side of the inverted head and shoulder formation occurred in the year 2021. The actual head or peak was formed during Ethereum’s price drop towards the end of 2022, which represented the lowest point in this pattern.

Furthermore, the right portion of the inverted head and shoulder configuration has been formed on Ethereum’s chart, as it has recently probed the neckline – a significant resistance level defined by a horizontal trendline. Notably, Ethereum surpassed $3,400 at this juncture, signaling a potential bullish reversal in line with the typical behavior of this technical pattern.

Examining the price graph, the gap from the peak (head) to the support line (neckline) is roughly 265.84%, implying a potential Ethereum surge towards $10,000 and $12,000 if the predicted pattern holds true. The upward-tilting inverse head and shoulder channel also reinforces this bullish projection, as Severino’s price prediction for Ethereum may coincide with the channel’s projected path.

Ethereum Whale Accumulation Trend Skyrockets

Currently, the Ethereum cost stands at $3,493 following a 2.3% increase over the last 24 hours. Notably, a well-known analyst called ‘Mister Crypto’ has disclosed that large investors, or ‘whales’, have been actively purchasing large quantities of Ethereum.

The analyst provided a graph showing the amount of Ethereum stored in ‘accumulation addresses.’ He revealed that large Ethereum investors, or ‘whales,’ have been acquiring ETH tokens at an increasing rate since 2017, indicating an exponential growth in their holdings. This significant increase in accumulation might signal that investors could be preparing for a potential rise in the price of Ethereum.

In the analyst’s graph, the large increase in Ethereum balances stored in accumulation wallets is indicated by the red arrow. This rise has been particularly notable over the past few months. Interestingly, many of these wallets associated with this significant accumulation have experienced slight outflows, suggesting that investors are holding onto their ETH for a long period.

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2024-12-25 15:24