ETH price is eyeing to test its ATH as the second-largest cryptocurrency price pattern moved out of forming a Head and Shoulder pattern seeing a trend reversal on the bullish side. A crypto analyst who goes by the Twitter name of Crypto Wolf pointed towards the failed Head and Shoulders pattern and predicted that ETH price could set its eyes on $2,500.
A ‘head and shoulders pattern is a chart formation that appears as a baseline with three peaks, the outside two are close in height and the middle is highest. In technical analysis, a head and shoulders pattern describes a specific chart formation that predicts a bullish-to-bearish trend reversal.
ETH price formed was on the verge of completing the head and shoulder pattern yesterday as all eyes were set on the next move, but failed to form the bearish pattern before seeing a trend reversal. After spending the most part of last month consolidating, Ether looks all set to retest its all-time high of $2,036 before eyeing $2,500.
— Wolf (@IamCryptoWolf) March 20, 2021
Ethereum On-chain Metrics Indicate Strong Ether Demand
Ether surpassed its 2017 ATH towards the end of February and just like Bitcoin, its market demand seems to be soaring with each passing day. On-chain metrics i.e ‘In/Out of the Money Around Price (IOMAP),’ a metrics that indicate the market demand of an asset, as about 14.26 million ETH had been previously bought by 1.09 million addresses within $1,772 to $1,826 price range.
The mounting gas fee and scalability issues on the Ethereum network did cause a bit of hiccup as many Ethereum-Killers have sprung up during this phase. However, most of these alternatives despite the recent spike in the trading volume are far from being an Ethereum replacement. ETH price is currently trading above $1850 with over 2.25% gain in the last 24 hours. The upcoming London Hardfork would also implement EIP-1559 that would potentially resolve the ongoing high gas fee problems on the Etheruem network.
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