Key Points
- Ethereum (ETH) crossed $2700, a crucial level that could trigger a bullish reversal.
- Increasing whale interest and positive market metrics support the potential for a continued uptrend.
Ethereum (ETH) recorded an 11% gain last week, breaking the $2700 mark. This is a significant level that analyst Peter Brandt suggested could initiate a bullish reversal.
Bullish Inverse Head-Shoulder Pattern
Brandt’s prediction was based on Ethereum crossing the neckline resistance of $2700, a bullish inverse head-shoulder pattern.
Another market analyst, Crypto McKenna, expressed a similar bullish projection for Ethereum. He suggested that if Ethereum reclaimed the $2850 mark, it could propel the cryptocurrency towards $3600.
Increasing Whale Interest
The bullish outlook for Ethereum is further supported by an increase in whale interest over the past few weeks. According to Hyblock’s Whale vs. Retail Delta, the metric turned green, indicating that whales are adding more long positions than retail on the Futures’ perpetual market.
The recent uptrend was strong, as shown by the Average Direction Index (ADX) reading of 50. If the uptrend continues, it could push Ethereum forward, particularly given the recent surge in exchange netflow.
The Binance Top Trader Long/Short ratio also supports the bullish sentiment for Ethereum. At the time of writing, nearly 73% of positions were long on Ethereum.
At the time of writing, Ethereum was valued at $2,723, approximately 48% away from this cycle high of $4K. This suggests that Ethereum’s current value offers a great risk-reward ratio and an asymmetric opportunity if the uptrend reaches the March high of $4K.
