Ethereum extended its winning streak on December 10, climbing for a fifth straight day as investors await the upcoming Federal Reserve interest rate decision. ETH has risen by roughly 25% from last month’s lows, and one leading analyst believes the token could be preparing for a significant breakout.
Inverse Head-and-Shoulders Pattern Points to Long-Term Upside
According to analyst Crypto Batman, Ethereum has formed a clear inverse head and shoulders pattern on the weekly chart. This setup often signals a large bullish reversal when completed.
The inverted head sits at the year-to-date low of $1,395, while the two shoulders are positioned near $2,130 and $2,633. The neckline for the pattern stands around $4,062.
If ETH moves toward the neckline, it would represent a gain of more than 25% from current levels. However, the analyst noted that this formation has taken nearly two years to develop, meaning the full breakout could take time to unfold.
Daily Chart Shows Even More Bullish Signals
Ethereum’s daily chart also presents multiple bullish indicators. ETH has already broken out of a falling wedge, a pattern often associated with sharp upward moves once the converging lines meet.
ETH has also pushed above the 50-day Exponential Moving Average and is attempting to break through the Supertrend indicator, both of which strengthen the bullish case.
The combination of bullish patterns on both the daily and weekly timeframes suggests Ethereum may be positioning for a major rebound.
Demand for ETH Continues Rising
Beyond technical patterns, Ethereum is seeing strong demand from institutional and retail investors. U.S. spot Ethereum ETFs added over $177 million in inflows on Tuesday, up from $55 million on Monday, bringing total ETF inflows to $13 billion.
Tom Lee’s BitMine has also continued increasing its Ethereum holdings as it moves toward owning 5% of ETH’s total supply.
This rising demand has contributed to a steep decline in the amount of ETH held on exchanges—a trend often associated with long-term bullish sentiment as holders shift tokens into storage rather than trading.
With falling exchange balances, strong institutional inflows, and several bullish chart patterns aligning, analysts believe Ethereum may be approaching a powerful breakout in the weeks ahead.
