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Ethereum (ETH) might be on the cusp of a massive price surge, potentially reaching as high as $12,000, but only if certain crucial market conditions are met. After weeks of market declines, including an 8.87% drop over the last seven days, Ethereum has begun to recover, posting a 2.41% gain in the past 24 hours.
An analysis by AMBCrypto highlights several market factors suggesting that ETH’s recent uptick could mark the start of a broader upward trend. One such indicator is the asset’s formation of an inverse head-and-shoulders pattern, which has historically been seen as a bullish sign. Additionally, rising liquidity flow into ETH and a decrease in exchange supply have increased the likelihood of a rally.
The data indicates that ETH has formed an ascending channel, a pattern associated with upward price movement. Furthermore, it has also created an inverse head-and-shoulders pattern, another bullish signal. A breakout above the neckline—a resistance level—of this inverse head-and-shoulders pattern could propel ETH significantly higher.
Based on the distance between the head and neckline, a successful breakout may result in a 265.84% increase, ultimately driving the asset’s price to $12,000.
Long traders in the derivatives market are aligning with the bullish outlook, as multiple buy contracts for ETH have been opened. The funding rate has now shifted into positive territory at 0.0089%, indicating that buyers (longs) are dominant and paying periodic fees to maintain equilibrium between spot and futures prices.
If this positive trend continues, it could support ETH in breaching the current neckline resistance. This could set the stage for a sustained rally and potentially lead to a new high near $12,000.
The market will be closely watching these key conditions to determine whether Ethereum can reach the predicted price milestone of $12,000 or not.
Source: ambcrypto.com
