Ethereum Price continues to hover below a key declining trend line, delaying a breakout of the inverse head-and-shoulder setup. A successful move above this resistance could kickstart a massive rally for ETH that determines how high it can go by the end of October.
ETH price today is up 0.37% and currently trades at $2,619. But there is more upside for Ethereum if it can breach a key level and sustain above it.
How High Can Ethereum Price Go?
The daily Ethereum price chart shows a clear inverse head-and-shoulder setup, a bullish pattern that forecasts a reversal of the downtrend. A move above the declining trend line connecting the lower highs formed since August 24 will signal a breakout. This technical formation contains three distinctive swing lows, with the central one lower than the rest. The one in the center is called the head and the ones on either side are the shoulders.
The target is obtained by adding the distance between the left peak and and the head’s lowest point to the breakout point as shown in the below chart. Based on this, Ethereum price forecasts that a breakout above the neckline aka declining trend line could see ETH rally 17% to $3,164.
Based on the inverse head-and-shoulders setup, the highest Ethereum price can reach in October is $3,164.
A closer look at on-chain data shows that investors are interested in Ether at the current levels and are likely investing.
On-chain Data Hints Investors Interested in Current ETH Price
The network growth metric from Santiment tracks the number of new addresses joining the Ethereum blockchain. A spike in this indicator shows that investors are interested in ETH at the current price levels.
Furthermore, the 365-day MVRV metric shows a recovery toward the zero mean level after bottoming around -18%. This indicator tracks the average profit/loss of investors that bought ETH in the past year. Between -20% to -10% is where short-term holders are in loss and is where long-term holders or institutions tend to accumulate.
Therefore, the spike in network growth coupled with the improvement on 365-day MVRV from -18% to near-zero, indicates that whales are accumulating ETH. This outlook supports the inverse head-and-shoulder breakout thesis and adds credence to higher prices for Ethereum by the end of October.
All in all, the Ethereum price outlook shows optimism and that ETH is ready for an uptrend. A breakout from the inverse head-and-shoulders pattern forecasts a move to $3,164, but ETH could climb much higher and tag $3,352 and $3,500 levels as shown in the above daily Ether price chart.
The post Here’s How High Ethereum Price Can Go by the End of October? appeared first on CoinGape.
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