The Ethereum market value increased by a net 3.16% in what turned out to be another momentous week for the cryptocurrency market as Bitcoin achieved a new all-time high price. Significantly, the prominent altcoin has greatly profited from the overall market resurgence over the past month, yielding a 44.69% price hike during this duration.
Curiously, well-known crypto analyst Ted Pillows has predicted Ethereum will sustain this favorable performance due to a bullish chart configuration.
Related Reading: Ethereum Net Flows Turn Negative As Bulls Push For $3,500
Possible ETH Breakout Pattern Indicates $3,000 Target – Analyst
In an X post on May 24, Ted Pillows disclosed that Ethereum’s price trajectory is establishing an inverse head-and-shoulders configuration on the 12-hour trading chart, indicating the altcoin may be poised for a price breakout in the imminent days. The inverse head-and-shoulders formation is one of the traditional bullish reversal setups, signifying a possible shift from a downtrend to an uptrend.
According to the Tradingview chart shared by Pillows, the left shoulder of this bullish template formed in February when ETH sharply dropped to about $2,000 before bouncing back and entering a range-bound phase that continued throughout the month.
In subsequent months, ETH would experience further price declines to trade as low as $1,400 in early April, shaping the head of this pattern. Since then, the altcoin has mounted a robust recovery, rising to approximately $2,700 before entering another consolidation phase, now forming the right shoulder of the pattern.
Based on Ted Pillows’ analysis, the $2,700 price level symbolizes the neckline of this inverse head and shoulders pattern. ETH bulls must secure a definitive close above this resistance level to validate any potential breakout, a challenge that has been difficult following two consecutive rejections in the preceding weeks.
Nevertheless, if Ethereum convincingly surpasses $2,700, Pillows supports the prospects of the altcoin swiftly reaching the $3,000 price level, suggesting a possible 17.4% increase over the current market price.
Ethereum Market Overview
At the moment of writing, Ethereum is trading at $2,500 after a 0.34% rise over the past day. At the same time, the daily trading volume of the asset has fallen by 58.22%, standing at $12.35 billion.
As per on-chain analytics firm Sentora, the Ethereum blockchain also observed a 23.9% drop in network fees recently, indicating a decrease in transactions and overall network activity. In a meanwhile, $74 million in ETH were transferred to exchanges, marking the first inflows in over four months. Nonetheless, Ethereum’s price has exhibited considerable resilience with no notable decline in reaction.
