In a post on X, Crypto Batman noted that the price of Ethereum had formed an inverse head and shoulders pattern on the weekly chart, which could lead to a strong bullish breakout in the coming months.
This pattern consists of an inverted head, which in this case is at this year's low of $1,395. It also has two inverted shoulders: the left at $2,130 and the right at $2,633. The neckline of this pattern is at $4,062.
Therefore, this pattern indicates that the coin could recover over time. A move towards the neckline represents a 25% increase from the current level.
The main caveat, however, is that it is based on the weekly chart, which typically takes time to form. For example, the coin has taken almost two years to form the pattern so far.
Meanwhile, the value of ETH has formed more bullish patterns on the daily chart, confirming that bullish outlook.
One of these patterns is the descending wedge, made up of two descending and converging trend lines. A strong bullish breakout occurs when both lines are about to meet, which has already happened.
The price of Ethereum has also moved above the 50-day exponential moving average and is now attempting to move above the Supertrend indicator, a move that would be very bullish for the token.
Therefore, a combination of a descending wedge on the daily chart and an inverted head and shoulders pattern on the weekly chart means a significant rebound may be on the way.
In addition to its technical aspects, the coin has some notable bullish catalysts that could generate further increases in the coming weeks or days.
It is experiencing increased demand from U.S. investors, with spot ETH ETFs accumulating over 177 million dollars in inflows on Tuesday, up from 55 million dollars on Monday. This increase raised the total accumulated inflows to 13,000 million dollars.
Ethereum is also seeing increased demand from BitMine's Tom Lee, who has continued to buy the token as he approaches owning 5% of the total supply.
All this demand has led to a sharp decline in the supply of Ethereum on exchanges, which has reached an all-time low. A significant drop in this supply indicates that more and more people are moving their tokens off exchanges.
