Ethereum Targets $3,900 as Brandt Confirms Powerful Trend Reversal
- Peter Brandt highlighted a bullish trend reversal in Ethereum, based on an Inverted Head and Shoulders pattern, signaling a potential sustained breakout.
- Ethereum briefly surpassed the $2,745 resistance, reaching a new October high of $2,765 with a 5% gain.
- Analysts predict a potential target of $3,900 if the breakout holds, with support levels at $2,117 and $1,932 in case of rejection.
Ethereum (ETH), the second-largest cryptocurrency, has turned heads once again with a confirmed bullish trend. This development was recently highlighted by renowned trader Peter Brandt, who has over 50 years of experience. Brandt, known for his accurate chart predictions, took to X (formerly Twitter) to share his insights on ETHs price trajectory.
Brandt pointed out a key technical formation on Ethereums daily charta developing Inverted Head and Shoulders (H&S) pattern. This pattern is widely regarded as a reliable indicator of bullish reversals in technical analysis. It consists of three price dips, with the middle one being the lowest (the head), flanked by two higher lows (the shoulders).
According to Brandt, Ethereum is gearing up for a sustained breakout, provided it can hold above a crucial resistance level. The chart shows a neckline, a trendline connecting the peaks between the shoulders, currently sitting around $2,745.
In a promising move, ETH briefly surpassed this line, rallying to a new October high of $2,765. This 5% daily gain is a significant rebound, especially after ETHs recent underperformance against Bitcoin.
Ethereum is currently trading near $2,736, just below its recent peak. The daily trading volume has increased by 18%, highlighting robust market activity. Its market capitalization has reached $329 billion, representing 19% of the overall cryptocurrency market.
This reversal signals a shift in sentiment after weeks of sideways movement. Traders and investors are keenly watching for Ethereum to hold above $2,745, which could confirm the breakout. If successful, ETH could aim for higher price targets, potentially around $3,900, according to analysts.
Despite the positive outlook, Brandt revealed that he is still flat in ETH, meaning he hasnt opened a position yet. His decision to stay on the sidelines indicates caution, possibly waiting for further confirmation before entering the market.
Other analysts echo Brandts cautious optimism. Jacob Canfield, a prominent technical analyst, noted that ignoring Ethereums bullish signals could be risky for traders. He also pointed out that support levels around $2,117 and $1,932 could come into play if the breakout fails to hold.
Whats Next for Ethereum?
Ethereums bullish trend marks a significant turn in the broader crypto market, especially as Bitcoin continues to dominate headlines. However, the true test lies in ETHs ability to maintain its momentum and surpass key resistance levels.
ETHs current momentum depends on its ability to stay above the $2,745 neckline resistance. If it can maintain this level, analysts project a potential rise toward $3,900. However, should a pullback occur, key support levels to watch are $2,117 and $1,932.
As Ethereum pushes forward, investors are gearing up for potential gains. All eyes are on whether this bull run will take Ethereum to new heights or if caution will prevail.
Read more: https://www.tronweekly.com/ethereum-3900-brandt-confirms-trend-reversal/
Text source: TronWeekly
