The price of Ethereum was able to see an uptrend, which had driven it up towards the beginning of the week. It finally broke above $3,000 again. However, the digital asset has had a hard time maintaining this position in what it showing to be a ‘takeout.’ Raoul Pal, CEO, and co-founder of Real Vision, recently presented his analysis on the digital asset, explaining when and how a breakout might occur.
Which direction is Ethereum headed?
Pal points out the inverted head-and-shoulders pattern, which began to form on Tuesday. It was still valid but showed signs for the digital asset. Pal pointed out that Wednesday’s Daily DeMark was showing 13 points and Wednesday showed 9. It means the breakout at the beginning of the week was likely to fail as Ethereum fell below $3K.
BUT, Daily DeMark is showing a 13 and a 9 tomorrow… so breakout possibly fails on first attempt, which is pretty typical of this pattern. Usually a trend line sharp pullback into middle of wedge and then upside break… pic.twitter.com/ZyaxhTIZmY
— Raoul Pal (@RaoulGMI) March 22, 2022
Pal elaborated further on what Pal meant for the cryptocurrency. This inverse head-and-shoulders pattern, which accurately nailed the lowest price for cryptocurrency in the week that’s currently underway, has validated the validity of the Weekly DeMark 9.
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But the probability that the inverse head and shoulder is valid is increased significantly by the Weekly DeMark 9 that is in place…nailed the low pretty much perfectly. pic.twitter.com/7W7dqMJQxl
— Raoul Pal (@RaoulGMI) March 22, 2022
The CEO stated that ETH/BTC has continued to consolidate. The CEO stated that the price of ETH/BTC should move up towards the top. In due time, the digital asset’s price will begin to fall.
ETH breaks above $3,000 | Source: ETHUSD on TradingView.com
The next week will see the results of Pal’s analysis. Like any other analysis, it will take time to see if the predictions are accurate and if Ethereum will change direction.
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It is trending at around $3,000. It has been difficult for the cryptocurrency to break this resistance line that it broke yesterday. But momentum is rising and it may break it once again to find support. But it still strongly remains a seller’s market which means the probability for a downtrend is more likely.
Ethereum trades at $3,004 as of the writing of this report. The slight dip following the break above 3000 has shown that bears still resist.
CNBC featured image, Chart from TradingView.com