The ETH price action on the 2-week chart showed an inverse head and shoulders pattern, indicating a potential bullish reversal.
Starting from a low of around $1,985, Ethereum price formed the “head” of the pattern in October, rallying to a neckline near $4,000 before pulling back to form the “right shoulder” at a higher low, indicating increasing confidence markets.
ETH price action is picking up
The price fluctuated around $3,960, approaching the critical neckline.
This pattern was significant as a break above the $4K neckline could confirm the pattern, potentially pushing Ethereum towards $7250.
This scenario remains conditioned by continued buying pressure and favorable market conditions.
The expected bullish outcome, however, must take into account the $7,250 target as a key resistance level, where a convergence of historical sell-offs could challenge further gains.
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If ETH holds above this line, it could signal a strong buyer-dominated market phase, supporting a rise to the projected high.
This analysis favors Ethereum if the market maintains its current momentum, aligning with the broader bullish sentiment in the crypto market.
ETH/BTC also broke the intraday timeframe marking the potential start of an explosive Altseason.
This could push ETH to and potentially over $7K. Ethereum price breaking out of the consolidation pattern could be a bullish signal for its next price targets.
With the rising RSI, currently positioned above the center line, it suggested an increase in buying momentum.
Resistance levels to watch were around 0.03800 BTC, with strong support established near 0.03285 BTC.
These developments indicate a shift from bearish to bullish sentiment, which may see Ethereum reach new highs against Bitcoin.
This scenario is supported by the price action where ETH has shown resilience and strength against BTC, hinting at a larger shift in the market in favor of altcoins.
Total net inflow of Ethereum Spot ETF
A look at the Ethereum ETF showed significant net inflows on January 3, totaling $58.79 million.
This increase, largely thanks to BlackRock’s ETHA ETF, which itself contributed $33.88 million, brought ETHA’s cumulative inflows to $3.559 billion.
That influx likely bolstered Ethereum’s market strength, pushing its price to $3,600.57 on the day.
This could signal growing institutional interest in Ethereum, which could stabilize and further boost the price.
Future implications depend on sustainable inflow levels; if they remain robust, Ethereum could see continued upward momentum.
However, any reversal in these inflows could undermine this optimistic forecast, pointing to the need for cautious optimism in trading strategies.
Ethereum Options Market Update
The ETH options market showed strong bullish sentiment, especially in call positions at the $3,700 and $4,000 strike prices, reflecting near-term confidence.
Trading volume and open interest suggest significant anticipation of price movement above these levels.
In particular, call positions for the $6,000 strike price in late March indicated that some investors were positioned for a significant upside move in the ETH price in the longer term.
The potential for ETH to reach or even exceed $7,000 was supported by the dynamics of the underlying market.
Investors’ strategic positioning in higher strike prices is aligned with broader expectations of a bullish momentum fueled by positive market influences.
This analysis indicated a strong basis for growth, taking into account both current trading behavior and historical reactions to similar setups in the options market.
If this uptrend continues, backed by consistent market inflows and trading patterns, ETH could make significant gains, with a target towards $7,000.
