Ethereum (ETH) appears to be nearing a crucial technical level, with a top analyst suggesting a reversal pattern similar to gold’s breakout. However, there has been a lot of discussion on whether Ethereum would be able to break out from its consolidation pattern or not, as it continues to follow Bitcoin’s trend.
At the time of writing, Ethereum (ETH) is trading at $2,953.20, marking a 0.23% increase over the last 24 hours, according to data from CoinMarketCap. Daily trading volume stands at $32.95 billion, while Ethereum’s market capitalization has reached approximately $356.83 billion.
Ethereum Forms Gold-Like Reversal Pattern
Instead, market attention has increasingly focused on a technical outlook presented by a crypto analyst, CRYPTOWZRD, in which Ethereum was considered to be possibly reversing its trend. The Ethereum price was compared by a market analyst to gold in terms of its long-term structure and price action before its major price breakout.
As CRYPTOWZRD points out, the Ethereum asset reached its peak in the market cycle of 2021 and then began to trade in an environment of consolidation for an extended period. In the current market environment, the asset has continued to rise from its lows and could be initiating an inverse head-and-shoulders pattern.
The formation, if confirmed, may imply a stronger move to the upside in the longer term. Gold has made a similar move in past cycles, sparking debate over whether ETH may make a similar move, as mentioned by the analyst.
Ethereum Holds Key Support Levels
From the daily chart, CRYPTOWZRD noted that ETH/USD ended the session without a clear direction, just like Bitcoin. It was not able to move past $3,060, and this may push it lower in the short term. On the other hand, holding this area may propel it to the upside.
Further data shows that the ETH/BTC pair closed without any signal, while ETH’s weekly data, including the ETF flows and futures contracts via CME, were bearish.
The analyst, however, states that better daily candles out of current positions could potentially change direction, depending on Bitcoin’s trend. The current support is $2,800, while the main resistance is at $3,700.
Also Read | Ethereum (ETH) Pulls Back as Major Investors Accumulate, Eyes on $3,072 Resistance
ETH Intraday Follows Bitcoin Trend
From an intraday perspective, ETH is still trading within a tight but irregular trading band. As long as the price is holding above $3,060, the long-term outlook will remain positive.
If the price were to break below here, $2,880 is a level of interest as a potential level of support. CRYPTOWZRD is advising investors to be patient as a clearer technical opportunity is still building.
As ETH is following the lead of Bitcoin in uncertain market conditions, the upcoming trading sessions may determine if the altcoin is able to regain its momentum or not.
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