- Ethereum price broke out of an inverse head-and-shoulders pattern on October 14, hinting at a 25% ascent.
- A retest of the neckline has pushed ETH up by 14% to where it currently stands, leaving another 10% gain on the table.
- Investors can expect ETH to push through, setting up a new all-time high at $4,550.
Ethereum price rose exponentially over the past 48 hours but experienced a massive flash crash on October 21. While this pushed ETH down significantly in a short period, the bulls’ perseverance kept the token afloat and ready for a new journey.
Ethereum price embarks on a journey to record highs
Ethereum price set up three distinctive swing lows from September 7 to October 14, forming an inverse head-and-shoulders pattern. The central swing point is the deepest and is called the head, while the other two are shoulders. The swing highs of these valleys are connected to form a horizontal resistance level or neckline at $3,639.
A decisive close above this barrier will confirm a breakout and forecast a 25% ascent, determined by measuring the distance between the right shoulder’s peak to the head’s lowest point. Adding it to the breakout point reveals a target of $4,550.
So far, Ethereum price has rallied 20% and retested the all-time high but has failed to breach through it. Moreover, ETH suffered a flash crash on October 21, which crashed its market value by 14% on some exchanges.
Ethereum price has climbed roughly 3% from yesterday’s swing low and reveals that another 10% ascent is likely to $4,550 or a new high. If the buying pressure persists, ETH bulls will rally toward the $5,000 psychological level, indicating a 20% ascent from the current position.
ETH/USDT 6-hour chart
While things are looking up for Ethereum price, the rejection at $4,387 could be the start of a double top formation, in which case, investors need to be wary of a crash toward $3,639. While this descent is plausible, it does not invalidate the bullish thesis. In some cases, the Ethereum price might extend as low as $3,385 before making a comeback.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.