Ethereum price held steady today, Dec. 10, rising for five consecutive days as investors braced for the upcoming Federal Reserve interest rate decision. ETH has jumped by ~25% from its lowest point last month, and a top analyst believes that it may be on the cusp of a big move.
Analysis Spots an Inverse H&S Pattern on the Ethereum Price Weekly Chart
In an X post, Crypto Batman, noted that Ethereum price had formed an inverse head and shoulders pattern on the weekly chart, which may lead to a strong bullish breakout in the coming months.
This pattern is made up of an inverted head, which, in this case, is at the year-to-date low of $1,395. It also has two inverted shoulders, with the left one being at $2,130 and the right one being at $2,633. The neckline of this pattern is at $4,062.
Therefore, this pattern means that the coin may stage a comeback over time. A move to the neckline itself is a 25% increase from the current level.
The main caveat, however, is the fact that it is based on the weekly chart, which normally takes time to happen. For example, it has taken almost two years for the coin to form the pattern so far.
ETH Price ForecastETH Pattern Has Formed More Bullish Signs
Meanwhile, the value of ETH has formed more bullish patterns on the daily chart, confirming that bullish outlook.
One of these patterns is a falling wedge, which is made up of two descending and converging trendlines. A strong bullish breakout happens when the two lines are about to meet, which has already happened.
Ethereum price has also moved above the 50-day Exponential Moving Average, and is now attempting to move above the Supertrend indicator, a move that would be highly bullish for the token.
Therefore, a combination of a falling wedge on the daily chart and an inverse head-and-shoulders pattern on the weekly chart means that a big rebound may be on the way.
Ethereum Price chartSoaring ETH Demand to Boost Its Performance
In addition to its technicals, the coin has some notable bullish catalysts, which may lead to more upside in the coming weeks or days.
It is seeing more demand from American investors, with the spot ETH ETFs adding over $177 million in inflows on Tuesday, higher than the $55 million it added on Monday. This increase brought the cumulative total inflows to $13 billion.
Ethereum is also seeing more demand from Tom Lee’s BitMine has continued to buy the token as it matches towards owning 5% of the total supply.
All this demand has led to a big drop in Ethereum supply in exchanges, which has dropped to a record low. A significant drop in this supply is a sign that more people are moving their tokens from exchanges.
Source: https://coingape.com/markets/top-analyst-sees-ethereum-price-having-a-big-breakout-as-catalysts-align/
