Ethereum (ETH) is showing potential for a significant bullish breakout as it develops a complex Inverse Head and Shoulders (iH&S) pattern on the weekly chart. This technical formation indicates that Ethereum could be gearing up for a substantial price increase, with bullish targets suggestively approaching $18,000.
After enduring a lengthy period of consolidation and declines amidst market challenges, Ethereum has recently rebounded from a critical support range of $1,800 to $2,000. This level had previously acted as resistance during the Head phase of the iH&S pattern, and its successful retest could signify that ETH is on the verge of entering a final reversal phase that may lead to new all-time highs. The ambitious $18,000 target is over eight times higher than the current price, emphasizing the dramatic forecast tied to this bullish formation.
The Inverse Head and Shoulders pattern is a widely recognized bullish reversal setup, often indicating the conclusion of a downtrend and the initiation of a strong upward movement. Given Ethereum ’s previous downturn, the emergence of this chart pattern may suggest that the extended decline is nearing an end. The left shoulder of the iH&S began forming between 2021 and 2022, reaching a peak before a pullback occurred. The subsequent decline from 2022 to 2023 marked the cycle low, creating the Head, and the right shoulder formed between 2023 and 2024, characterized by a higher low aligned with the left shoulder.
A critical aspect of this analysis is the neckline of the iH&S formation, positioned around $3,978, which serves as the primary resistance level to monitor. Should Ethereum manage to break through this pipeline with robust trading volume, it could validate the iH&S pattern and pave the way for a notable rally towards $18,000. Conversely, failure to surpass this resistance might lead to a period of prolonged consolidation or a significant pullback, with the potential for a price drop to $1,888, an important support level that could help mitigate further declines. Such a move would signify a 52% dip from the resistance level and an 8.52% reduction from Ethereum ’s current market value of $2,055.
