Ethereum Price Prediction: Inverse Head and Shoulders Pattern Predicts $10,000
An expert has found an inverse head and shoulders pattern on the 6-month long-term Ethereum price chart, indicating a price explosion. Ethereum could soon reach $12,000, a new all-time high for the second-largest cryptocurrency by market cap, according to this bullish pattern.
When the cryptocurrency breaks the neckline after the pattern is completed, it may enter an uptrend. Ethereum price fell by about 8% in the previous week.
After falling from over $4,000 to under $3,500, Severino expects Ethereum to rebound to $12,000, as the leading cryptocurrency.
The analyst's price chart shows that the left shoulder of the inverse head and shoulders pattern developed in 2021, while the head formed during the Ethereum price decline in 2022, marking the lowest point of the pattern.
Ethereum just tested the neckline, a resistance level for a horizontal trend, completing the right shoulder of an inverse head and shoulders pattern. The bullish reversal associated with this pattern was confirmed when Ethereum broke above $3,400.
The distance between the head and the neckline on the price chart is 265.84%, indicating that Ethereum could rise between $10,000 and $12,000. Severino’s Ethereum price target could coincide with an upward sloping channel of an inverse head and shoulders pattern, supporting this bullish view.
The analyst published a chart of Ethereum’s accumulated address balance. Ethereum whales are rapidly buying up ETH tokens, significantly increasing their holdings since 2017. The large increase in accumulation shows that investors are ready for a positive price move.
The red arrow in the analyst’s chart indicates a recent increase in ETH balances on accumulation addresses. Most wallets associated with this increase in accumulation have seen small outflows, indicating long-term investor holding.