You Need to See This Ethereum Crocked Inverted Head & Shoulder Patten
Ethereum (ETH) made an inverted Head and Shoulder pattern on the daily chart, which was the catalyst for the current rally. However, unlike the traditional inverted head and shoulder pattern, the current version printed on the ETH daily chart is "crocked."
Inverted Head and Shoulder Pattern
In technical analysis, this "crocked" form is also called the Quasimodo pattern.
Unfortunately, it's a little harder to identify because the head is not the lowest point of the pattern. Nevertheless, it remains a powerful bearish-to-bullish reversal signal.
ETH's price accelerated to the upside once the price took out the neckline, but the good news is that the inverted head and shoulder target has not been met.
The price target is the pattern's height, aka the difference between the lowest point of the head and the neckline, which is then projected to the upside from the neckline breakout point. In our case, the measurement price target comes at around the $3,900 level.
200-Day Moving Average
In the short term, ETH's price is stalling at the critical 200-day Simple Moving Average (SMA).
Still, the price trading between the 200-SMA and 50-SMA is an early sign of a potential golden cross signal – aka the crossing of the 50-SMA above the 200-SMA, which is a bullish reversal signal.
