Ethereum’s price is on the brink of a potential breakthrough, as a keen analyst has spotted the formation of an inverse head and shoulders pattern on its long-term price chart spanning six months. This promising formation has sparked expectations that Ethereum might soar to $12,000 shortly, setting a new record for the second-largest cryptocurrency by market cap.
Ethereum Price Aiming for $12,000
In a recent post on X (formerly Twitter), crypto analyst Tony Severino shed light on a price chart demonstrating this inverse head and shoulders, a technical analysis tool that hints at a possible trend reversal. This captivating chart pattern consists of four essential components: the left shoulder, head, right shoulder, and neckline.
Typically, when this pattern completes and a cryptocurrency breaks above the neckline, it signals a transformation from a downtrend to an uptrend. For Ethereum, the price has been on a notable decline, dropping over 8% just within the past week.
Despite a fall from a peak of more than $4,000 to below $3,500, Severino remains hopeful about the potential for a turnaround, eyeing an optimistic target of $12,000 for this top-ranked altcoin.
Upon analyzing the chart, we can see that the left shoulder formed back in 2021, while the head emerged during Ethereum’s price dip at the end of 2022, marking the deepest point of the pattern.
The right shoulder of this inverse pattern is now complete, with Ethereum having recently tested the neckline—an important resistance point indicated by a horizontal trendline. Notably, Ethereum surpassed the $3,400 mark, reinforcing the bullish trend reversal often linked with this chart configuration.
Analyzing further, the gap between the head and the neckline measures about 265.84%, hinting that Ethereum could jump between $10,000 and $12,000 if all goes as predicted. The upward trajectory of the inverse head and shoulders pattern strengthens this optimistic price expectation, aligning with Severino’s price increase forecast.
Surge in Ethereum Whale Accumulation
While Ethereum’s current trading price stands at $3,493—with a 2.3% increase in the last 24 hours—another analyst, known as Mister Crypto, has reported that whales are engaging in a substantial buying frenzy.
In sharing a chart detailing Ethereum’s balance in accumulation addresses, Mister Crypto noted that these whales have been stocking up on ETH tokens significantly, steadily adding to their holdings since 2017. This remarkable surge in accumulation hints that investors are positioning themselves for an upcoming price upswing.
A notable spike in the ETH balance across accumulation addresses has occurred recently, as indicated by a red arrow on the analyst’s chart. The majority of wallets actively participating in this accumulation have shown minimal outflows, implying a long-term holding approach by these investors.
With the bullish sentiment surrounding Ethereum and the emerging patterns indicating potential growth, many are eagerly watching to see if the $12,000 target becomes a reality—prompting a new chapter in the cryptocurrency’s story.
