Ethereum (ETH) Coin Price Prediction: ETH Exhibits Bullish Inverted Head and Shoulders Pattern, Will It Shatter the $3500 Barrier?

Ethereum (ETH) coin has faced a challenging week, with price facing rejection around the $3500 hurdle multiple times. With the Bitcoin price surpassing $100000, speculators predict the Ethereum price will follow suit and may shatter the $3500 barrier.

Ethereum (ETH) coin price has been facing hurdles in breaking past the $3500 level multiple times this week. However, with Bitcoin price crossing the $100,000 mark, speculators are suggesting that the Ethereum price might follow suit and finally shatter the $3500 barrier.

Apart from the anticipation, a key bullish pattern, an inverted head and shoulders pattern, is also in play, which could lead to a massive breakout rally for the ETH price very soon.

At press time, the Ethereum price was trading at $3306, showing a decline of over 2.89% in the past 24 hours. Its market cap was around $398.69 Billion, and the trading volume had dropped by over 19%.

Ethereum’s Reveals Growing Bullish Momentum: Here’s the Key Insights

A textbook inverted head and shoulders pattern was observed on the Ethereum price chart, indicating a bullish outlook.

Historically, ETH price remained stuck in the $2800-$2900 range for nearly 37 days in mid-April. This consolidation preceded a significant rally.

As pointed out by Ali Martinez, Ethereum might be gearing up for a similar move, with the pattern’s right shoulder currently forming, hinting at potential upward price action ahead.

If the ETH price manages to突破 the $3500 resistance, it could continue its ascent toward the $3800 level. This bullish chart setup, coupled with strong investor信心 and renewed demand, could propel the rise.

Moving forward, the Ethereum crypto might be set for a major bullish trend ahead. However, this bullish thesis will be invalidated if the immediate support level of $3150 is breached.

Whale Activity Highlights Underlying Market Strength

As the Ethereum price consolidated around the $3400 level, a whale’s activity caught attention with a significant transaction.

Blockchain transaction tracker Whale Alert reported on X that a whale moved 21,314 ETH, valued at $73.88 Million, from Kraken to an unknown wallet.

This whale might be pulling out these large holdings from the exchange, perhaps in anticipation of an upward move and bullish market sentiment.

What Do On-Chain Signals Suggest?

On-chain metrics from IntotheBlock further support the bullish outlook for Ethereum. The Net Network growth surged by over 0.25%, indicating an increase in active users on the network. Simultaneously, 72% of investors were in the green, bolstering the bullish sentiment.

Furthermore, new addresses joining the network soared by 8.65%, reflecting the rising demand for the network's services. Massive inflows were seen into Ethereum this month, with a net asset flow of $166.6 million.

This showed that Ethereum's price increase to $3400 was accompanied by a boost in inflows at a time when the market needed it.

Moreover, the flows into Ethereum ETFs suggest that Ethereum might be able to withstand market volatility. This is because, with institutional backing, Ethereum caters to both speculation and long-term investment, aiding in the sustained price increase.

Futures Market Data Outlook

According to data from Coinglass, the Open Interest (OI) rose by 1.24% amidst a price decline of over 2.89%, indicating a buildup in short activity over the past 24 hours.

However, the long/short ratio across exchanges signaled mixed cues as equality was somehow maintained. About 49% of long contracts were present, compared to 50% of shorts, displaying indecision among traders.

This article is intended for informational purposes only and does not constitute financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please conduct your own independent research before making any financial decisions.