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According to veteran trader Peter Brandt, Ethereum may have just seen its future become clearer. Known for his technical forecasts, Brandt believes that the altcoin is on the verge of a bullish reversal.
He identified an inverse head and shoulders formation on the daily chart of Ethereum. This is one of the most classic buy signals in technical analysis. If ETH manages to hold above this neckline at $2,745, we could see a breakout.
The most interesting graphic developments I’m seeing right now
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#1$ETH closing price chart inverted H&S pattern
I’m flat on ETH pic.twitter.com/OCG0GcTdxF– Peter Brandt (@PeterLBrandt) October 21, 2024
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But the enthusiasm doesn’t stop there. Data from IntoTheBlock shows that Ethereum’s network is stronger than ever, with over 5 million active addresses across its mainnet and layer 2 networks.
Although the market mood is still mixed, this statistic confirms the importance of Ethereum in the crypto ecosystem. Although some investors see Ethereum’s long-term future improving, others are concerned about near-term dangers.
There are now over 5 million active $ETH addresses on the Ethereum mainnet and major L2 networks, far surpassing any other layer 1 asset. pic.twitter.com/W6JaauNvhV
– Intotheblock (@intotheblock) October 21, 2024
A long term game
Ethereum has definitely had its ups and downs. From a price as low as $10 to almost $4,900 in the past, it is very evident that ETH has won over many early believers. And while these crazy adventures can be full of heartbreaking moments, Ethereum has never failed to ensure that its core strength lies in facilitating smart contracts and decentralized applications in the blockchain space.
However, the cost base of Ethereum for many investors has increased as the market has matured. This has made short-term gains more elusive, leading some traders to approach the market with caution. But for those with a long-term view, Ethereum’s ambitious roadmap and history of overcoming challenges continue to make it an attractive option.
Ethereum: the next path
One of the most fascinating technical aspects of Ethereum’s current pricing behavior is its interaction with the Point of Control (POC). Often seen as important support or resistance, this level could be crucial in deciding Ethereum’s next direction.
As the ETH price approaches this point, it suggests a possible buying opportunity for those looking at the long term. If the POC holds, Ethereum could build a solid foundation for future growth. But a break below this level could signal trouble ahead, so investors should remain cautious.
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Will the bullish reversal hold?
Brandt’s bullish prognosis gives optimism to ETH fans. If Ethereum holds above $2,745 and the inverse head and shoulders pattern persists, it could move significantly higher.
Yet, as always, it’s essential to consider other market factors: broader trends, technical indicators, and market sentiment all play a role in Ethereum’s future.
Although Ethereum has its challenges, the potential for a bullish breakout is hard to ignore. Whether you’re interested in the long term or closely watching short-term gains, Ethereum’s next move could be big.
Featured image from AFP/Finance Magnates, chart from TradingView
