Will an inverse head-and-shoulders pattern send EThereum to $5,000?
With most of the market moving on from Ether’s lackluster performance over the past month, multiple traders were eyeing the current market setup as a potential bullish opportunity.
Jelle, a long-term crypto investor, identified the formation of an inverse head-and-shoulders pattern within another bullish setup of ascending triangles on the weekly chart.
The probability of a bullish breakout improves significantly with the price converging within a couple of bullish confluences, as the analyst hinted at the possibility of price discovery for the altcoin.
In fact, Alec, a derivative trader, said Ether was developing a tightening on both the 30-minute low time frame (LTF) and 1-day high time frame (HTF).
With liquidity present on both sides of the spectrum, the trader said:“A larger move is on the horizon for ETH. Take the liquidity and run the opposite way? But which way??"
Lastly, Cold Blooded Shiller, a markets analyst, opined on the dismissive nature of the industry on Ethereum right now and said:“$5k ETH by March, and this will be the saltiest space on Earth.”
While $5,000 is an attainable target for Ether, its immediate hurdle remains at the $4,100 level. Since 2024, Ethereum has managed to break above a descending trendline on two separate occasions, but the overhead resistance at $4,100 has not been breached.
Thus, for Ethereum to target $5,000, the immediate condition is to flip $4,100 into support on the daily and weekly chart. Once the price action has been accepted above the aforementioned level, Ether could rally to $5,000, but until then, the altcoin still needs to rally against bearish odds.
