Ethereum is on a roll, starting the week strong after a surge last week. The price is currently pushing towards $2,800, a key resistance level.
Analyst Sees a Bullish Pattern
One crypto analyst, known as @IamCryptoWolf on X, believes Ethereum is poised for a significant breakout. They see an “inverse head and shoulders” pattern forming on the 3-day chart, which is a bullish signal in technical analysis.
This pattern suggests a shift from a downtrend to an uptrend. It looks like a head with two shoulders, with the head being the lowest point. The neckline, connecting the peaks between the shoulders, acts as a resistance level. Once the price breaks above this neckline, it often leads to a strong upward move.
For Ethereum, the analyst has identified the neckline at around $2,800. With the price already approaching this level, a breakout seems likely.
Target Prices and Potential Gains
The analyst believes that if Ethereum breaks through $2,800, the next target is $3,400. Breaking through that level could see Ethereum retest its yearly high above $3,920 and potentially even reach $4,000.
These targets represent potential gains of 25% and 45%, respectively, from the current price.
Ethereum and the Broader Market
Ethereum’s performance this year has been closely linked to the overall crypto market, especially Bitcoin. The broader market is currently experiencing a positive sentiment, with many large cryptocurrencies seeing gains.
Ethereum’s price breaking above $2,700 for the first time since October, along with an increase in long-term holders, further reinforces the bullish sentiment.
What’s Next?
The next few days could be crucial for Ethereum. If the price manages to break through $2,800, things could get very interesting indeed. The potential for significant gains is high, and the analyst’s prediction of a bullish breakout could be just the beginning.
