ETH in long term
2024-12-25
Category: None

Ethereum Weekly Analysis: Inverse Head and Shoulders Pattern in Play

Ethereum (ETH) is displaying a textbook inverse head and shoulders pattern on the weekly time frame, signaling a potential bullish breakout ahead. Here's a detailed look:

📌 Pattern Structure:

Left Shoulder: Formed around mid-2024 after an initial dip and recovery.
Head: A significant deeper low around late 2024, marking the pattern's base.
Right Shoulder: Currently forming with a higher low, completing the structure.
📏 Neckline Resistance:
The yellow horizontal line at approximately $4,000 marks the neckline resistance. A confirmed breakout above this level could validate the pattern and signal a bullish trend continuation.

📈 Measured Move Target:
The projected upside from the breakout is approximately $7,800, calculated by measuring the distance between the head's low and the neckline and extending it upward. This represents an 86.73% potential gain from the breakout point.

💡 Key Observations:

Volume confirmation will be critical to validate the breakout.
A breakout above the neckline would suggest strong bullish momentum, while rejection could lead to a retest of the support levels.
📊 Conclusion:
This inverse head and shoulders pattern on ETH's weekly chart is a bullish setup, with a potential move to the $7,800 region if the neckline resistance is broken. Traders should watch for confirmation signals and manage risk accordingly.

What are your thoughts on this pattern? Share your insights in the comments below! 🚀