fxs_header_sponsor_anchor

Ethereum Price Prediction: ETH will likely rally to $2,550 following recent bullish breakout

  • Ethereum price validated the inverse head and should formation, which is a known bullish pattern.
  • On the short-term timeframe, ETH is likely set to witness another 5% growth to meet the target price set by the pattern.
  • Price indicators also suggest room for further increases; however, ETH might not be able to breach $2,440.

Ahead of the new year, cryptocurrencies are exhibiting volatility, with no asset following a fixed pattern. This kind of behavior is expected before a major event that can have a considerable impact on the price action, and in the crypto market’s case, it is the upcoming spot Bitcoin ETF approval.

Ethereum price sees another bout of growth 

Ethereum price trading at $2,433 recently breached a crucial resistance level marked at $2,334. This price point is key to a historically known bullish pattern called the inverse head and shoulder formation. 

The Head and shoulder formation generally signals a bearish outcome, but this pattern does the opposite. Inverse head and shoulders is a reversal pattern that is formed by three consecutive lows along with two intermediate highs. The first and third lows are called shoulders, located approximately at the same level above the second low – the head. Another important line is the one drawn along the intermediate highs – the neckline.

The pattern is completed only when the right shoulder rises above the neckline, suggesting that further rallying will be akin to the height of the head. 

In the case of ETH, the height of the head marks a $218 growth, placing the target at $218 above $2,334. This brings the expected rise to $2,551, marking a 9.3% growth. Since, on the 8-hour chart, Ethereum price has already satisfied the pattern with the breach of the neckline, there is room for further growth.

ETH/USD 8-hour chart

Trading at $2,433, ETH could still rise by another 5% before reaching the target price, breaching which would set the altcoin up for an increase to $3,000. 

Price indicators, Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), are both exhibiting room for bullishness. 

Ethereum RSI and MACD

However, a failed breach of the target price could bring ETH back down to $2,400, which could happen if short-term traders look for profit-taking as well, invalidating the bullish thesis.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.