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Peter Brandt, a renowned trader with five decades of experience, has confirmed a bullish trend reversal for Ethereum, noting that its chart is now among the most interesting.
Today, Ethereum posted an approximate 5% gain, rallying to $2,765, its highest point in October. Amid this turnaround, Brandt shared an analysis suggesting that Ethereum’s ongoing uptrend might be here to stay after the asset underperformed Bitcoin in recent weeks.
Ethereum Bull Run Confirmed with Inverted Head and Shoulders Bottom
Taking to X early today, Brandt highlighted a developing Inverted Head and Shoulders (H&S) pattern on Ethereum’s daily chart. The chart shows promising bullish signs for the world’s second-largest cryptocurrency.
Brandt’s chart indicates a clear H&S bottom. The formation is characterized by a lower low (the “head”) flanked by two higher lows (the “shoulders”).
This pattern suggests that Ethereum is set for a sustained breakout if it surpasses a crucial resistance level. Specifically, the chart highlights a neckline, represented by a sloping trendline connecting the peaks between the shoulders.
This neckline currently sits near the $2,745 mark, indicating that for the bullish pattern to confirm, Ethereum needs to break above this line with conviction.
Interestingly, Ethereum briefly breached this line, establishing a fresh daily peak at $2,765. At the time of reporting, Ethereum is trading at $2,736.
Just a week ago, when Brandt first pointed out the inverse head and shoulders pattern forming on Ethereum, its price was around $2,443. At the time, ETH was making an attempt at the crucial neckline resistance.
With Ethereum’s success in overcoming the resistance level, the ongoing trend suggests that the bulls are regaining control.
Brandt is “Flat in ETH”
However, while Brandt acknowledges the promising signs of this formation, he revealed that he is currently “flat in ETH,” meaning he has not yet taken a position. This caution suggests he is likely waiting for more confirmation before entering the market.
Ethereum’s Potential Target
Notably, other market watchers have also confirmed Ethereum’s promising prospects amid its ongoing pattern. Technical analysts like Jacob Canfield warn market participants to fade ETH’s bullish momentum at their own risk.
One analyst argued that Ethereum could be headed for a price level of $3,900 with the ongoing pattern. Meanwhile, the analyst highlighted support levels at $2,117 and $1,932 in case of a rejection.