Ethereum displays signs of a potential bullish breakout as a clear Inverse Head and Shoulders pattern emerges on its daily chart. A combination of technical factors and network metrics may be indicative of further price direction shifts.
Inverse Head and Shoulders Pattern Emerges
On Ethereum's daily chart, a clear Inverse Head and Shoulders pattern has developed. Recently, Ethereum (ETH) dipped into the $2,850–$2,920 range, triggering heightened buying interest. Over the past ten months, ETH has traded within a broader accumulation range of $2,850–$4,000, suggesting a potential bullish breakout is on the horizon. This movement mirrors Bitcoin's recent upward trend, hinting that ETH may follow a similar trajectory.
Ethereum Recent Price Movements
In a recent analysis, it was questioned whether $2,900 could be the ultimate buy opportunity. Yesterday, Ethereum briefly dropped to $2,930 before rebounding strongly to its current level near $3,200. This price action underscores growing support within the $2,850–$2,920 zone, reinforcing its importance for traders and investors.
Ethereum Support and Resistance Levels
According to Intotheblock.com, Ethereum faces primary resistance between $3,270 and $3,365, while strong support is observed in the range of $3,175 to $3,080. Breaking above resistance levels could catalyze further bullish momentum, while the support zone remains crucial for maintaining upward trends.
Ethereum's prolonged accumulation phase, combined with recent whale activity and strong buy-zone support, signals potential for a bullish breakout. While network activity metrics like the decline in new addresses warrant attention, the price action and on-chain data suggest that ETH remains poised for upward movement, particularly if it can surpass key resistance levels.
