Ethereum is one of the cryptos that performed well and has the strongest fundamentals of all crypto. Besides the fundamentals, technical analysis also points to the asset gaining exponentially in the near-term.
A crypto analyst named Crypto Wolf has said that one pointer to a bullish Ethereum is a broken head and shoulder pattern. Crypto Wolf has stated that with this pattern, there is a chance of Ether testing the $2500 price level.
According to the analyst, the head and shoulder pattern is a chart pattern that has a baseline and three peaks. At the same time, it has two heights, with the middle one being the highest of them all. Wolf added that the chart pattern is always a good predictor of bullish or bearish reversal patterns.
— Wolf 🐺 (@IamCryptoWolf) March 20, 2021
In Wolf’s view, Ethereum is close to making a complete head and shoulders pattern, and that as of yesterday, it failed to complete a bearish reversal pattern. The crypto analyst further stated that for the better part of last month, ETH was in consolidation and that a confirmation of the bullish pattern would see it retest its recent all-time high and possibly test a new high of $2500.
Besides the chart pattern, Ethereum’s on-chain metrics also point to a bullish future. According to the In/Out of the money around price (IOMAP) on-chain metric, the market demand for the queen of crypto is increasing. 14.26 million ETH was purchased by 1.09 million addresses when trading between $1772 and $1826. While Ethereum faces some severe scalability issues, it is still far from being displaced by any of its competitors.