Ethereum’s native token Ether (ETH) looks ready to continue its ongoing rebound move toward $4,000, according to a technical setup shared by independent market analyst Wolf.

Classic bullish reversal pattern in the works? 

The pseudonymous chart analyst discussed the role of at least three support levels in pushing the ETH price up by nearly 30% from its local bottom of $2,160. These price floors included a 21-month exponential moving average (EMA), the 0.786 Fib level of a Fibonacci retracement graph drawn from $1,716-swing low to $4,772-swing high and the lower boundary of an ascending triangle pattern.

ETH/USD daily price chart featuring the three-supports. Source: TradingView

Wolf noted that the triple-support scenario could push Ether price to $3,330. In doing so, the confluence would activate a classic bullish reversal setup, dubbed inverse head-and-shoulders (IH&S).

In detail, the IH&S pattern could have Ether form three consecutive troughs, with the middle trough (the head) deeper than the other two (the left and right shoulders). Meanwhile, all the troughs will hang upside down below a common resistance trendline, called the neckline.

In a “perfect” scenario, a break above the IH&S neckline may push the Ether price to as high as the maximum distance between the neckline and the head. That puts the ETH price en route to $4,000.

ETH/USD daily price chart featuring IH&S setup. Source: Wolf, TradingView

But if ETH gets rejected in the run-up to $3,000, it would mean a pullback toward the ascending triangle support. 

ETH bulls ain’t out of the woods

As Cointelegraph…

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