ETH signals updates | Bit Bull on Binance Square

ETH signals updates | Bit Bull on Binance Square

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$ETH coin

This chart shows an inverse head and shoulders pattern for Ethereum (ETH) on the weekly timeframe. The pattern is a bullish reversal signal, typically indicating that the price may rise significantly after completing the formation. Here’s an explanation of the key elements:

1. Inverse Head and Shoulders Pattern

Left Shoulder: The price declined and then bounced upward, forming the first low point.

Head: A deeper decline followed by a recovery, creating the lowest point in the pattern.

Right Shoulder: A smaller decline that doesn’t go as low as the head, followed by a bounce upward, completing the pattern.

2. Neckline

• The blue horizontal line connects the highs between the shoulders and the head. This serves as the resistance level.

• A breakout above this neckline signals a bullish reversal.

3. Box Support

• Two purple lines below the pattern mark strong support zones. These levels represent where the price has previously consolidated or rebounded.

4. Measured Move

• The blue vertical arrow indicates the expected price target after a breakout. The target is calculated by measuring the distance from the bottom of the head to the neckline and projecting that upward from the breakout point.

• In this case, the target suggests ETH could rise by approximately 129.77% to the $6,800–$7,000 range.

5. RSI (Relative Strength Index)

• The RSI indicator at the bottom shows a reading of around 54.68, suggesting neutral momentum. This implies the market is not yet overbought, leaving room for potential upside.

6. Confirmation

• The breakout above the neckline (around $4,400) is crucial. If the price closes above this level on the weekly timeframe, it confirms the bullish pattern.

7. Risks

• If the price breaks below the box support zone, the bullish pattern might fail, leading to further downside.

Overall Outlook:

This chart implies a potential bullish breakout for Ethereum, with a significant price target near $6,800 if the neckline is successfully breached. However, traders should watch the support levels and confirm the breakout before entering trades.

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