Renowned market analyst Peter Brandt has recently posted on his official Twitter account that the Ethereum (ETH) price is in a confirmed bull market cycle. In his recent post, Brandt noted that an inverted H&S pattern emerged on Ethereum’s daily chart.
This pattern, often a bullish signal, is characterized by a low point “head” that is located between two higher low points known as “shoulders”. Brandt’s analysis for Ethereum shows that if the surge continues, ETH price may be preparing for a longer sustained rally.
The H&S formation also reveals that the neckline is currently standing at around $2,745. More so, Ethereum has already moved slightly beyond this level, touching $2,765, which is October’s highest price.
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Ethereum Breaks Crucial Resistance Amid October Rally
The growing Ethereum trend was further established when it formed a breakout above the all-important $2,745 level to touch $2,765. This surge was to an approximate 5% in total, bringing Ethereum to an October high.
This correction was established after Ethereum was trading weaker in comparison with Bitcoin. However, its recent increase signals the market’s robustness.
Even though analyst Brandt has seen the positive signs, he has mentioned that he has not taken any position and is “flat” on Ethereum. This subdued response shows that traders are yet to receive stronger signals of the breakout.
Moreover, October’s bullish sentiments for Ether are backed by founder Vitalik Buterin’s plan to scale the Ethereum network to over 100,000 TPS. As a plan of action that revolves around optimizing Layer 1 and Layer 2 networks, this solution intends to scale horizontally whilst retaining decentralization and security as its core values.
Analysts Predict Potential Ethereum Target of $3,900 Amid Bullish Signs
Following the confirmation of Ethereum’s bullish pattern, analysts are now considering potential price targets. Some experts, including Jacob Canfield, warn against ignoring Ethereum’s upward momentum. They cite the possibility of a price surge to $3,900 if the trend continues.
While optimism grows, analysts have also pointed out key support levels at $2,117 and $1,932 in the event of a rejection. These levels could act as safety zones if Ethereum fails to maintain its current trajectory.
However, the prevailing sentiment suggests that the bulls may be gaining control, with many market participants keeping a close eye on ETH price.
ETH Price Action and Market Outlook
Ethereum price rally to $2,765 has reignited discussions about the cryptocurrency’s potential, particularly as it continues to exhibit bullish patterns. Moreover, the MACD indicator shows a bullish signal. The MACD line has crossed above the signal line, supported by a green histogram.
This suggests increasing bullish momentum for the ETH price, further supported by the chart’s price action reaching recent highs. Similarly, the histogram indicates growing strength in the trend, pointing to further upward movement.
At press time, Ethereum price is $2,616, reflecting a 0.19% gain over the past 7 days. The cryptocurrency’s market cap stands at $314.98 billion, with a 24-hour trading volume of $16.65 billion.
