Ethereum Enters Consolidation Phase: Decoding ETH Price Analysis

• As a bullish reversal pattern, the Inverted Head and Shoulders may foreshadow an upswing.
• Traders stand to gain significantly from the projected 27% price rise from the order block level.

The April 12 rollout of the Shanghai and Capella upgrades, together known as the Shapella, is eagerly anticipated by the ETH community. Investors in the cryptocurrency market likely regard the Shanghai hard fork as a bullish trigger occasion, given the altcoin’s price increase in the week preceding the event.

From 8 November 2022 to 11 January 2023, Ethereum’s (ETH) price ranged from $1075 to $1340, a consolidation period. Throughout this time period, there was neither a major increase nor a decrease in the price of ETH.

Nevertheless, beginning on 12-Jan-2023, the price of ETH reached the mark-up zone, ushering in a bullish run that lasted until the 20th of the same month. In only eight days, the price of ETH increased by 20%, from $1340 to $1674.

At present, ETH is trading in an Inverted Head and Shoulders pattern, which indicates that the asset is attempting to accumulate the price and exit odd from the level in order to let smart money gather more volume. This accumulating phase is a leading indicator of an imminent price explosion. The forecast price of ether (ETH) is $2300 by 20 May 2023, a 27% rise from the order block level, while the entry area for the Smart Money Order Block is $1700.

During the consolidation period, ETH traders were noted to be more cautious in their trading techniques. They waited for a definitive breakthrough indication before making any investments. Other investors, however, took advantage of the time of low volatility to stock up on ETH at a discount.

As a bullish reversal pattern, the Inverted Head and Shoulders may foreshadow a subsequent upswing. This pattern is defined by a decrease in price followed by a rise to make the left shoulder, then a lower drop to form the head, and then another rise to develop the right shoulder. The price then surges after breaking out of the pattern and rising over the resistance line.

So, investors may benefit from the probable price explosion in the near future by buying Ether (ETH) during the current consolidation period and selling it during the ensuing bullish run. A bullish reversal is likely, and traders may utilize the Inverted Head and Shoulders pattern to anticipate it. Traders stand to gain significantly from the projected 27% price rise from the order block level.