- Ethereum’s forming inverse head and shoulders may break $4k, eyeing $10k by May 2024, despite a possible $3k test.
- Ethereum’s $3,000–$3,200 support zone is crucial for maintaining bullish momentum before a potential breakout.
- Double-bottom formations signal Ethereum’s continued rally, with a next resistance target near $4,600 before $5k+.
The price structure of Ethereum (ETH) indicates a possibility for further upward momentum, indicating bullish action. A possible inverse head and shoulders (iHS) pattern is building on the right shoulder of ETH, indicating that its bullish trend will continue.
This setup could provide the necessary momentum to break through the critical $4,000 resistance and target $10,000 by May 2024. However, traders should note the possibility of a test of the $3,000 support level before a breakout occurs.
Ethereum’s Price Chart: Key Support and Resistance Zones
Ethereum’s price since mid-2023 exhibited an ascending triangle pattern, a bullish structure supported by higher lows and a horizontal upper resistance line. This pattern became more evident as ETH broke out in late 2023, propelling the price upward. By early 2024, ETH had broken past resistance levels near $3,250, spiking towards $4,000 before facing rejection.
Consequently, Ethereum retraced and tested the support range between $3,000 and $3,200, shown by the green zone. This area is crucial in maintaining bullish sentiment. The recent price consolidation suggests that ETH may be preparing for another upward move, especially with higher lows forming. The market structure indicates an increasing likelihood of a breakout once this consolidation phase concludes.
The Role of Double Bottoms and Breakout Potential
Furthermore, Ethereum reveals two bullish double-bottom formations, each followed by breakouts above the neckline. These formations occurred during both the 2023 consolidation and the retracement in 2024. The confirmation of these breakouts further supports the bullish thesis and hints at the likelihood of a continued rally.
The next major resistance zone lies around $4,600, which could be the target for bullish buyers. Breaking this level would open the path toward a speculative target above $5,000. If ETH successfully overcomes this resistance, its upward momentum may accelerate, bringing it closer to $10,000 in the coming months.
