Ethereum is currently trading around $2,500, having recently failed to break through the $2,700 mark. Despite this setback, many believe a significant price increase is on the horizon.
A Bullish Pattern Emerges?
Analyst Ted Pillows sees a promising sign: an inverse head and shoulders pattern forming on the 12-hour chart. This pattern is often a precursor to a price reversal and could propel ETH towards $2,700 and beyond. Holding the $2,500 support level is crucial for this bullish scenario to play out. A failure to do so could lead to further price drops.
Altseason Hinges on Ethereum
Many are anticipating an “altseason”—a period of significant gains for altcoins (cryptocurrencies other than Bitcoin). However, most agree that Ethereum needs to lead the way. A strong move above $3,000 by ETH is generally seen as a necessary trigger for a broader altcoin rally. Currently, Ethereum’s consolidation near $2,500 following its failed attempt at $2,700 keeps this potential altseason in suspense.
Technical Analysis: Key Levels
Let’s dive into the specifics: Ethereum is currently trading around $2,512. The chart shows consolidation between $2,470 and $2,700, forming what could be the right shoulder of the inverse head and shoulders pattern. The 34-day Exponential Moving Average (EMA) sits at $2,557, and the 100-day Simple Moving Average (SMA) is at $2,511, providing immediate support. Bulls need to defend this level to avoid a deeper correction. Decreased trading volume suggests selling pressure might be easing. Staying above $2,470 is key for the bullish pattern to remain valid. A decisive break above $2,700 could quickly push ETH towards $3,000.
What’s Next for Ethereum?
The coming days are critical. Ethereum needs to reclaim the 34-day EMA and build momentum above $2,600 to confirm its strength. Failure to hold support could delay the anticipated breakout and potentially postpone the altseason.
