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Ethereum (ETH) Might Form Popular 'Head and Shoulders' Pattern, But It Might Lead to Reversal

Fri, 02/24/2023 - 17:00
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Arman Shirinyan
Crypto Market Review: Correction on cryptocurrency market is aggravation, as industry mastodons are losing ground under their feet
Ethereum (ETH) Might Form Popular 'Head and Shoulders' Pattern, But It Might Lead to Reversal
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Ethereum (ETH) has been hovering around the $1,600-$1,750 price range, and its inability to break through this price level has been a cause for concern among traders. Adding to this is the recent development of a "Head and Shoulders" pattern, which is considered a bearish reversal pattern.

The left shoulder represents the start of the uptrend, the head represents the peak of the uptrend and the right shoulder represents the end of the uptrend. If the price breaks below the neckline, which is drawn through the lows of the two shoulders, it signals a bearish reversal.

Ethereum chart
Source: TradingView

ETH has been struggling to break through the resistance level of $1,600-$1,750 for some time now. The Head and Shoulders pattern that has formed could signal a bearish reversal from the local high. Traders should be cautious and wait for confirmation of the pattern before making any trading decisions.

Meanwhile, the Ethereum burn rate is rallying massively, with over 61,000 ETH burned in the first 24 hours since the implementation of Ethereum Improvement Proposal (EIP) 1559. This proposal aims to make transaction fees on the Ethereum network more predictable by introducing a mechanism that adjusts fees based on network demand. However, the lack of fundamental growth factors in the Ethereum ecosystem is still a concern for many traders.

XRP's anemic performance

XRP, the fourth-largest cryptocurrency by market capitalization, has been going through a period of anemic performance. While it is not uncommon for cryptocurrencies to experience periods of volatility, XRP's performance has been relatively stable over the past few months, which has led some investors to wonder if it has lost its momentum.

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Despite the lack of volatility, numerous indicators are showing that XRP's price could see a spike in the foreseeable future. However, this spike may not necessarily go in favor of XRP holders. This is because XRP has been moving in an ascending channel, which means it has been experiencing higher highs and higher lows. This is a bullish trend, but it also suggests that a price correction could be on the horizon.

What's next for ANKR?

Ankr has recently announced a collaboration with tech giant Microsoft, leading to a 75% price spike in the ANKR token. The partnership involves Ankr's expertise in providing infrastructure solutions that connect builders, applications and users to the newest layer of the internet, Web3. The two companies aim to provide high-performance blockchain connections to those who are building new Web3 experiences for the next billion users.

XRP Price Analysis for February 22

This collaboration comes at a crucial time for Ankr, as the token is currently facing a correction and the trading volume is descending. However, this may simply be a reflection of the general trend on the market, rather than a sign of an upcoming price drop. Nonetheless, the partnership announcement has certainly caused a surge in investor interest, leading to a 65% increase.

ANKR's recent partnership with Microsoft is undoubtedly a major milestone for the company. Microsoft is a renowned tech giant with a global reach, and the partnership will undoubtedly provide Ankr with invaluable exposure to new markets and audiences. Moreover, the partnership highlights the growing importance of Web3 and blockchain technology in the tech industry.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.