ETH/USD Inverted Head and Shoulders Pattern to Complete?

2 thg 7, 2023

Helped by the Relative Strength Index (RSI) rebounding from the 50.00 centreline, longer-term price action on the weekly timeframe reveals ETH/USD ruptured the upper boundary of a pennant formation ($2,140, $1,737) in June. Taking the value of the pole that preceded the pennant pattern and extending this value from the breakout level, the pattern’s profit objective can be found at $2,634.

Consequently, assuming buyers continue to navigate higher levels over the coming weeks, and the unit consumes the $2,140 peak, we could see the price head for $2,634.

Across the page on the daily chart, following the correction from the $2,140 peak, an inverted head and shoulders pattern has since formed. The head, as you can probably see, gathered support from trendline support taken from the low of $1,074. With Friday ending the week testing the underside of the pattern’s neckline (drawn from the high of $1,927), a close above this line will complete the pattern and prompt chart pattern enthusiasts to plot the pattern’s profit objective (value between head and neckline charted from the breakout level) which is expected to fall in close by resistance from $2,146. However, conservative buyers will likely seek a daily close north of nearby resistance at $1,962 before committing.