- ETH recorded a bullish reversal pattern.
- Options data was less optimistic about an ETH breakout before the US elections.
Ethereums [ETH] The price has remained resilient in recent months amid the raging FUD. The largest altcoin generated 12% in its latest recovery, rising from the $2.3K support to a high of $2.6K.
According to Peter BrandtETH could explode even further amid an inverted head and shoulders pattern – a bullish reversal formation.
Source: Peter Brandt
Can ETH Cross $3K?
In most cases, a breakout above neckline resistance ($2.7k) in the head and shoulders pattern can hit a target equal to the height between the head and neckline.
For ETH that would mean about $3.3K. The target coincided with the bearish Order Block (OB) and the resistance level highlighted in white.
Source: ETH/USDT, TradingView
However, demand for ETH was still significantly weak, which could delay Brandt’s projection. Since late September, the Coinbase Premium Index, which measures US investor interest in ETH, has been in negative territory.
Historically, high demand in the US usually coincides with a strong uptrend for ETH. Whether it is the latest Vitalik Buterine roadmap for ETH will change market sentiment remains to be seen.
Source: CryptoQuant
That said, the options market was less optimistic about ETH crossing $3K before the US elections in November.
According to Deribit factsthere was only an 8.6% chance of ETH reaching $3,000 at the end of October, compared to a 31% chance in November.
In short, options data suggested a higher chance of an ETH breakout after the US elections.
Source: Deribit
