The Ethereum market price rose by a net 3.16% in what proved to be another historic week for the crypto market as Bitcoin registered a new all-time high price. Notably, the prominent altcoin has largely benefited from the general market resurgence in the past month, resulting in a 44.69% price increase over this period.
Interestingly, popular crypto analyst Ted Pillows has tipped Ethereum to maintain this positive performance based on a bullish chart pattern.
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Potential ETH Breakout Pattern Hints At $3,000 Mark – Analyst
In an X post on May 24, Ted Pillows shares that Ethereum’s price movement is forming an inverse head-and-shoulders pattern on the 12-hour daily trading chart, suggesting the altcoin may be due for a price breakout in the coming days. The inverse head-and-shoulders pattern is one of the classic bullish reversal patterns, signaling a potential change from a downtrend to an uptrend.
Based on the Tradingview chart presented by Pillows, the left shoulder of this bullish formation of this bullish inverse head-and-shoulders pattern formed in February, when ETH sharply declined to around $2,000 before rebounding and entering a range-bound phase that persisted through the month.
In the following months, ETH would register deeper price falls to trade as low as $1,400 in early April to form the head of this pattern. Since then, altcoin has staged a strong recovery, climbing to around $2,700, before entering another consolidation phase that now forms the right shoulder of the pattern.
According to Ted Pillows’ analysis, the $2,700 price mark represents the neckline of this inverse head and shoulders pattern. ETH bulls must achieve a decisive close above this resistance level to confirm any potential break, a task that has proven tough following two successive rejections in the past few weeks.
However, if Ethereum convincingly breaks out above $2,700, Pillows backs the altcoin to swiftly reach the $3,000 price mark, indicating a potential 17.4% on the current market price.
Ethereum Market Overview
At the time of writing, Ethereum is trading at $2,500 after a 0.34% gain in the past day. Meanwhile, the asset’s daily trading volume is down by 58.22% and valued at $12.35 billion.
According to on-chain analytics firm Sentora, the Ethereum blockchain also recorded a 23.9% decline in network fees over the past indicating a decline in transactions and general network use. Meanwhile, $74 million in ETH were deposited in exchanges, representing the first inflows in over four months. Nevertheless, Ethereum’s price has shown much resilience with no significant decline in response.