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21 October, 2024

Ethereum Price Prediction: Analyst Sees Potential for Big Move

21 October, 2024

Ethereum Price Surges: Analyst Sees Potential for Big Move

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The Ethereum price started the new week by extending last week’s gains, pushing towards resistance at $2,800. This upward momentum has caught the attention of crypto analysts, with one predicting a significant breakout could be on the horizon.

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The analyst, known as @IamCryptoWolf on X, identified an inverse head and shoulders pattern on the ETH/USD 3-day candlestick chart. This technical formation suggests a potential reversal from a downtrend to an uptrend. The pattern consists of three distinct lows – the left shoulder, the head, and the right shoulder – with the head forming the deepest low. The neckline, connecting the peaks between the shoulders, acts as a critical resistance level.

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According to the analyst, breaking above this neckline, currently around $2,800, could ignite bullish momentum for Ethereum. The analyst forecasts a potential breakout target of $3,400, representing a 25% increase from the current price. Further gains could see Ethereum challenge its yearly high above $3,920 and potentially even break through to new highs.

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Ethereum’s Performance in Broader Market Context

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Ethereum’s price performance in 2024 has been closely tied to the overall market conditions, particularly Bitcoin’s movements. The recent rise in Ethereum has coincided with an overall bullish sentiment in the broader cryptocurrency market, with many large-cap cryptocurrencies experiencing gains.

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Furthermore, the recent increase in long-term Ethereum holdings has added fuel to the bullish sentiment. As more addresses move their Ethereum into long-term holding, it suggests a belief in the long-term potential of the cryptocurrency.

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Ethereum’s recent price surge, combined with the bullish technical analysis and positive market sentiment, suggests that the coming days could be pivotal for the rest of the year. Ethereum has the potential to experience a significant upward move above $2,800, making things ‘about to get interesting’ indeed.