Veteran Analyst Brandt Spots Bullish Reversal in Ethereum as Head and Shoulders Bottom Forms

Veteran market analyst Peter Brandt has recently identified a potential bullish reversal pattern forming in Ethereum (ETH).

Brandt’s latest analysis highlights the development of a Head and Shoulders (H&S) bottom pattern in Ethereum’s price chart, which could signal a price surge if certain conditions are met.

The current price level of $2,617 brings Ethereum closer to the critical neckline resistance, which will be pivotal in determining the next price movement.

Head and Shoulders Pattern in Focus

According to Brandt, the pattern is forming as a result of several key price movements. The left shoulder of the pattern emerged around late July to early August when Ethereum’s price dipped to levels around $2,330.

This was followed by a recovery, but a subsequent price drop in September formed the head, marking a lower low of around $2,253.

The right shoulder began to take shape in early October when the price dipped again, but support was found above $2,330, signaling a weakening of bearish momentum.

One of the key aspects of this pattern is the neckline, which slopes slightly downward and connects the highs reached during the retracements between the shoulders and the head. This neckline is currently acting as resistance.

A confirmed breakout above this neckline would indicate a bullish reversal, potentially leading to significant upward price movement for Ethereum.

Expert Analysis Points to $6,000 Potential

While Brandt’s analysis focuses on the head and shoulders bottom pattern, fellow analyst Ali Martinez has introduced an alternative perspective. Martinez’s analysis centers around Ethereum’s movement within an ascending price channel on the weekly chart.

This channel has historically seen Ethereum’s price bounce off the lower boundary, leading to substantial price increases.

Martinez highlights several instances where Ethereum’s price surged after reaching the channel’s lower boundary. For example, in July 2023, the cryptocurrency experienced a 130.77% price increase following one of these bounces.

A similar event saw the price rise by 168.88% from $1,500 to $4,150 earlier this year. If this historical pattern holds, Martinez projects that Ethereum could potentially rise to $6,000, provided the price maintains its support level at $2,300.