Ethereum Bullish Trend Signals Quick Rise to $3,000 – Insights Available

The price of Ethereum experienced an increase of 3.16% during a significant week for the cryptocurrency market, coinciding with Bitcoin reaching a new peak. This altcoin has considerably profited from the overall market upturn seen in the last month, leading to an impressive 44.69% increase in its value throughout this timeframe.

Notably, crypto analyst Ted Pillows believes that Ethereum is likely to sustain this upward trend, attributing it to a favorable chart formation.

Analyst Points to Potential ETH Breakout near $3,000

In a social media update, Ted Pillows highlighted the development of an inverse head-and-shoulders pattern on the 12-hour chart for Ethereum, which indicates that a price breakout could be forthcoming soon. This pattern is recognized as a classic bullish reversal indicator, suggesting a possible shift from a downward trajectory to an upward one.

Pillows illustrated on a Tradingview chart that the left shoulder of this bullish pattern began forming in February, following a steep drop to around $2,000, before the asset rebounded and entered a stabilization phase that lasted for the remainder of the month.

In the subsequent months, Ethereum faced further declines, hitting lows of about $1,400 in early April, which corresponds to the head of the pattern. Since that point, the altcoin saw a robust recovery, rising to approximately $2,700 before settling into another consolidatory period that now constitutes the right shoulder of the pattern.

According to Pillows’ analysis, the $2,700 level serves as the neckline of this inverse head-and-shoulders pattern. For a breakout to be confirmed, ETH must close decisively above this resistance, a challenge that has resulted in two recent rejections over the past weeks.

Nevertheless, should Ethereum break out convincingly past the $2,700 mark, Pillows predicts that the altcoin could rapidly approach the $3,000 threshold, suggesting a potential increase of 17.4% from its current valuation.

Current Ethereum Market Status

As of now, Ethereum is valued at $2,500, reflecting a modest gain of 0.34% in the last 24 hours. However, trading volume for the asset has fallen by 58.22%, amounting to $12.35 billion.

Insights from on-chain analytics firm Sentora indicate that network fees on the Ethereum blockchain have dropped by 23.9% over the same period, which points to a decrease in transaction activity and overall network utilization. Additionally, $74 million worth of ETH has been deposited into exchanges, marking the first inflows in more than four months. Despite this, Ethereum’s price has remained surprisingly resilient, exhibiting no notable declines.