Cryptocurrency trader and analyst Ali Martinez believes Ethereum (ETH) could have a massive breakout due to one key factor.
Martinez tells his 114,500 followers on the social media platform X that crypto whales are loading up on Ethereum, adding buying pressure that could cause the altcoin to increase more than 100% above its current value.
The analyst says that on-chain data is shows whales made more than $1 billion in total ETH purchases in the past seven days alone.
“Whales have accumulated over 330,000 Ethereum in the past week, valued at more than $1 billion!”
The analyst believes ETH may now be consolidating amid the buying frenzy before a “massive bullish breakout.”
“This buying pressure is building momentum. Ethereum is currently forming the right shoulder of a head and shoulders pattern. While the $2,700 to $2,900 range serves as a buying opportunity, a sustained close above the neckline at $4,000 could result in a bullish breakout to $7,000.”
According to the trader’s chart, Ethereum may be completing on the daily chart a bullish inverse head and shoulders pattern, which traders use in technical analysis to identify a potential trend reversal in a downtrend.
“If you examine the formation of the left shoulder, ETH consolidated around $2,800 for 37 days in mid-April before moving higher. A similar consolidation could occur now while the right shoulder of this head-and-shoulders pattern develops.”
Ethereum is trading at $3,486 at time of writing, up 5.4% in the last 24 hours.
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