Monday, March 4, 2024

Ethereum Rally: Potential Surge to $2,550 After Recent Bullish Breakout.

Cryptocurrencies are volatile ahead of the new year; no asset has a consistent tendency. This type of activity is typical before a significant event that can significantly affect the course of the market; in the case of the cryptocurrency market, this event is the impending approval of a spot Bitcoin ETF.

Ethereum price sees another bout of growth
With Ethereum trading at $2,433, it recently broke through a critical $2,334 resistance level. The inverse head-and-shoulder formation, a well-known bullish pattern in the past, is dependent on this price point.

This pattern reverses the usual bearish outcome signaled by the head-and-shoulders configuration. A reversal pattern known as “inverse head and shoulders” is made up of two intermediate highs and three successive lows. Located about at the same elevation above the second low, or the head, are the first and third lows, also known as the shoulders. The neckline, which is drawn along the intermediate highs, is another significant line.

Only when the right shoulder reaches above the neckline does the pattern finish, indicating that more rallying will be similar to the height of the head.

Regarding ETH, the head height indicates a $218 increase, setting the target at $218 over $2,334. As a result, the projected increase to $2,551 is 9.3% growth. There is still potential for an increase because the 8-hour chart shows that the price of Ethereum has already broken through the neckline, satisfying the pattern.

At $2,433, ETH has room to grow by an additional 5% before hitting the target price, which would allow the altcoin to surge to $3,000.

Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) are showing signs of bullishness.

But if short-term traders continue to search for profit-taking, a failed breach of the target price might drive ETH back down to $2,400, undermining the bullish thesis.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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