Ethereum (ETH) is showing some serious bullish signs! A complex Inverse Head and Shoulders (iH&S) pattern has formed on the weekly chart, hinting at a major price rally.
The iH&S Pattern and the $18,000 Prediction
Crypto analyst Gert van Lagen believes ETH could hit a whopping $18,000. This is based on the iH&S pattern, a classic bullish reversal signal often seen at the end of a downtrend. The pattern shows a series of price movements:
- Left Shoulder (2021-2022): A price peak followed by a pullback.
- Head (2022-2023): A deeper decline, marking the cycle’s low point.
- Right Shoulder (2024): A higher low, mirroring the left shoulder.
This pattern suggests Ethereum’s prolonged decline might be over.
The Key Resistance Level: $3,978
The crucial level to watch is the neckline of the iH&S pattern, around $3,978. This acts as major resistance. Breaking through this with strong trading volume would confirm the pattern and pave the way for the $18,000 target.
What if it Fails?
If ETH can’t break past $3,978, we might see more consolidation or a significant pullback. Van Lagen suggests a potential drop to $1,888, a strong support level. This would be a 52% drop from the resistance level and about an 8.5% dip from the current price.
The Bottom Line
Van Lagen’s $18,000 prediction is ambitious, representing an 8x increase from the current price. While the iH&S pattern is a bullish indicator, it’s crucial to remember that this is just one analyst’s interpretation. The market is unpredictable, and this prediction should be taken with a grain of salt. The $3,978 resistance level will be key to watch for confirmation.
