Ethereum had seen some uptrend that had sent the price up at the start of the week, finally breaking above $3,000 once more. However, the digital asset has had a hard time maintaining this position in what it showing to be a ‘takeout.’ Raoul Pal, CEO, and co-founder of Real Vision, recently presented his analysis on the digital asset, explaining when and how a breakout might occur.
Where Is Ethereum Headed?
Taking a look at the inverse head and shoulders pattern that began forming on Tuesday, Pal points to this pattern which was still confirming but still showed some indicators for the digital asset. He pointed to the fact that the Daily DeMark had been showing a 13 and a 9 on Wednesday. And what this means was that the breakout of the early week would probably fail on the first try, which it did as Ethereum had fallen below $3K.
BUT, Daily DeMark is showing a 13 and a 9 tomorrow… so breakout possibly fails on first attempt, which is pretty typical of this pattern. Usually a trend line sharp pullback into middle of wedge and then upside break…
— Raoul Pal (@RaoulGMI)
Explaining further, Pal explained what this could mean for the digital asset. The inverse head and shoulders had been validated by the Weekly DeMark 9 that is currently in place, proven by the pattern accurately nailing the low of the price of the cryptocurrency.
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But the probability that the inverse head and shoulder is valid is increased significantly by the Weekly DeMark 9 that is in place…nailed the low pretty much perfectly.
— Raoul Pal (@RaoulGMI)
ETH/BTC continues to run a consolidation though, the CEO pointed out. Adding that this should continue to move towards the top of the flag. After this, the price of the digital asset is expected to break out in due course.
ETH breaks above $3,000 | Source:
This analysis by Pal is expected to play out through the next week. As with any analysis, time will tell if the prediction is accurate or if Ethereum will end up moving in a completely different direction.
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As for the digital asset, it continues to trend just around $3,000. This resistance point which had been broken yesterday has proven to be hard to beat for the cryptocurrency. However, with momentum rising, it very well could once more break above it and find support. But it still strongly remains a seller’s market which means the probability for a downtrend is more likely.
The price of Ethereum is trading at $3,004 at the time of writing. Bears are still mounting significant resistance at this point, as evidenced by the slight dip that has followed this break above $3,000.
Featured image from CNBC, chart from TradingView.com
