Ethereum price is showing signs of a breakout, an analyst has noted creating a reverse head and arm pattern on the 6-month long-term price chart. This bullish pattern has fueled predictions that Ethereum could soon surge to $12,000, meaning novel all-time record for the second largest cryptocurrency by market capitalization.

Ethereum price target is $12 with novel chart pattern

In Tuesday’s post, X (formerly on Twitter) featured cryptocurrency analyst Tony Severino released Ethereum price chart illustrating an inverse head and shoulder, technical analysis indicator signaling: potential trend reversal. This distinctive chart pattern consists of four key elements: the left shoulder, the head, the right shoulder and the neckline.

Typically, once the pattern is fully formed and the cryptocurrency breaks through the neckline, it indicates a potential transition from a downtrend to an uptrend. In the case of Ethereum, its price has been on a clear downward trajectory, falling by over 8% over the past week.

Despite the decline from high price over $4,000 below $3,500, Severino remains sanguine about Ethereum’s potential to reverse the trend, predicting bullish price target $12,000 for the best altcoin.

Analyzing the analyst price chart, the left arm of the reverse head and shoulder formed in 2021, while the head emerged during Ethereum price collapse at the end of 2022, marking the lowest point of the benchmark.

Additionally, the right shoulder of the inverse head and shoulders pattern is ready, and Ethereum has recently tested the neckline – a key resistance level in a horizontal trendline. Then, Ethereum has exceeded the $3,400 levelconfirming the bullish trend reversal often associated with this chart pattern.

Looking at the price chart, the head-to-neck distance is around 265.84%, which suggests Ethereum could rise in the $10,000 to $12,000 range if the pattern continues as expected. The upward-sloping inverse head-and-shoulder channel further supports this bullish trend outlook, with Severino’s Ethereum price target likely aligning with the channel’s trajectory.

The whale accumulation trend in Ethereum is growing rapidly

One sec Ethereum price is trading at $3,493 after rising 2.3% in the last 24 hours, an analyst known as “Mister Crypto” revealed that the whales went on a shopping spree.

The analyst shared a chart illustrating Ethereum’s balance on accumulation addresses. He revealed that Ethereum whales are exponential purchase of ETH tokenssteadily increasing its assets since 2017. The edged raise in accumulation suggests that investors are potentially preparing for bullish price action.

The red arrow in the analyst’s chart also shows a huge raise in the ETH balance on accumulator addresses in recent months. Most portfolios associated with this growing accumulation saw petite outflows, signaling investors’ long-term holding behavior.

Featured image created with Dall.E, chart from Tradingview.com