While several other altcoins have fairly shone in the current bull cycle, the Ethereum price has often struggled to live up to its reputation as the “king of altcoins.” Since losing the $4,000 level last year, ETH has not shown any real promise of reaching its all-time high price.
More recently, though, the Ethereum price appears to be recovering well after being under intense bearish pressure since the start of the year. With this little show of momentum, the altcoin has been touted to witness significant upward movement over the coming months.
How High Could ETH Price Climb?
In a Jan. 17 post on the X platform, prominent crypto analyst Ali Martinez shared an audacious bullish prediction for the price of Ethereum over the next few months. According to the crypto trader, the cryptocurrency looks set for a rally to around $7,000.
This projection is based on the formation of the inverse head-and-shoulder pattern on the daily Ethereum price chart. The inverse version of the head-and-shoulders pattern is a technical analysis formation marked by three distinct price troughs, including a lower “head” set between two higher “shoulders.”
While the head-and-shoulders pattern often signals a potential bearish reversal, the inverse pattern indicates a possible bullish breakout. However, the inverse pattern is also validated when the price breaks above the neckline, which is a trendline connecting the crests (swing highs) between the head.
As observed in the chart above, the price of Ethereum appears to have completed the right shoulder of the inverse head-and-shoulders pattern. The altcoin now seems to be approaching the neckline, which is wedged between the $4,000 and $4,100 region.
Martinez noted that a successful close of the Ethereum price above the $4,100 mark could set the stage for a rally to $7,000. This represents an almost 100% rally from the current price point. According to Martinez, the recent on-chain movement of whales could prove a useful catalyst for such a move.
The latest on-chain data shows that whales have accumulated over 330,000 ETH (worth more than $1 billion) in the past week. This level of whale activity can be bullish for the Ethereum price, especially as it has been correlated with significant price increases in the past.
Ethereum Price At A Glance
As of this writing, the Ether token is valued at just beneath $3,500, reflecting an almost 5% price jump in the past 24 hours. According to data from CoinGecko, the price of Ethereum is up by nearly 7% in the past week.
Related Reading: Whale Activity Spikes as Bitcoin Reclaims $102,000—What Investors Need To Know
Source: NewsBTC