Head and shoulder formation is ideally associated with bearish trends. However, an inverse of that shape brings out bullish sentiments—at least when it comes to crypto. ETH has demonstrated inverse head and shoulder formation, igniting a sense of higher achievements in the days to come.
It is estimated that the token could surpass $2,550 at the earliest. A tentative timeline is unavailable considering the volatility factor, but it could be achieved once there is a mark of $2,440 on the graph.
Another pattern will be formed when Ethereum’s token rises by 5%.
That said, it is important to note that a head and shoulder formation is identified by three consecutive lows and two immediate highs. A cycle then forms the shape of the prevailing sentiment in the market. Rotate that, and one gets an inverse head and shoulder shape.
ETH is currently exchanging hands at $2,402.44 (at the time of writing), an increase of 4.98% in the last 24 hours. It further marks an increase of 6.70% in the last 7 days, and so on. Ethereum price prediction estimates that the token can end 2023 at a higher milestone. An earlier predicted estimate of $3,903.58 will obviously be dialed down. Nevertheless, it will continue running above the lowest mark of $1,741.59.
Relative Strength Index and Moving Average Convergence Divergence reflect the futuristic aspect of a bull run.
Much depends on how short-term traders react to ETH’s breach of the valuation of $2,300. Selling a portion of their portfolio in ETH for profit will hurt the overall price. Accumulating, or simply retaining, the stock would still do its job.
Another factor likely to fuel the rise in the price is the SEC’s approval of the Spot Bitcoin ETF. Bitcoin dominates the market regardless of the season it is going through. An approval from the Commission will pave the way for a structured investment from traders, boasting cryptocurrency’s market cap. Bitcoin is currently being traded at 42,934.21, a jump of 0.60% in the last 24 hours. The token has mostly stayed in the range of $40k in recent times. It was the lowest at $41875.41 on December 27, 2023. A recovery is now on the way for Bitcoin.
ETH is alternatively aiming to target $2,400. It may be difficult for the year-end, but the next year would carry the potential, especially if applications go through. Assuming ETH has a $2,550 valuation, it would next be tasked with getting a valuation of $3,000. RSI and MACD are supporting this move. Several factors need to align, including support from the community.
ETH and BTC are the ideal candidates to bring the sphere back to its glory after surviving the crypto winter.
Source: https://www.cryptonewsz.com/eth-targets-2550-dollars-after-a-bullish-breakout/