- ETH showed a bullish reversal pattern.
- Options data was less optimistic about an ETH breakout before the US election.
Ethereum (ETH) Prices have remained resilient amid intense FUD over the past few months. The largest altcoin recorded a net gain of 12% in the recent recovery, rising from $2.3K support to a high of $2.6K.
According to peter brandtETH may explode further in an inverted head-shoulders pattern (bullish reversal formation).
Source: Peter Brandt
Can ETH surpass $3K?
In most cases, a break above the neckline resistance ($2.7,000) in a head-shoulders pattern would reach the target, which is the height between the head and the neckline.
For ETH this means approximately $3.3K. The target coincided with the bearish order block (OB) and the resistance level shown in white.
Source: ETH/USDT, TradingView
However, demand for ETH is still quite weak, which may delay Brandt’s prediction. Since late September, the Coinbase Premium Index, which measures US investors’ preference for ETH, has been in negative territory.
Historically, high demand in the US tends to coincide with a strong upward trend in ETH. Is it up to date? Vitalik Buterin The roadmap for ETH will change market sentiment.
Source: CryptoQuant
That said, the options market was less optimistic about ETH breaking above $3,000 before the US elections in November.
According to Deribit dataBy the end of October, there was only an 8.6% chance of ETH reaching $3,000, while in November it was a 31% chance.
That said, options data suggested that a breakout for ETH was more likely after the US election.
Source: Deribit