Ethereum (ETH) is showing signs of a bullish breakout, forming a complex Inverse Head and Shoulder (iH&S) pattern on the weekly timeframe. This key technical formation suggests that the Ethereum price is on track for a massive rally toward a bullish target of $18,000. 

Ethereum Forms Inverse Head & Shoulder Pattern

The Ethereum price has been in a long consolidation period, experiencing a crash amid the ongoing market turmoil. Despite recording massive declines that have pushed its value significantly below all-time highs, crypto analyst Gert van Lagen on X (formerly Twitter) predicts that ETH could still reach a price target of $18,000.

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Notably, Ethereum recently bounced off the $1,800 – $2,000 support range, which previously served as resistance during the ‘Head’ phase of the iH&S pattern. With this crucial retest confirmed, ETH may be entering the final stage of its reversal, set up to new all-time highs. 

Lagen’s $18,000 bullish target is more than 8X Ethereum’s current price, underscoring the sheer magnitude of this projection. Lagen has identified the formation of the iH&S structure on the Ethereum chart, supporting his ambitious prediction with this renowned bullish chart pattern. 

The Inverse Head and Shoulder is a classic bullish reversal structure, often signaling the end of a downtrend and the beginning of a strong and new uptrend. Considering the Ethereum’s price has been in a downturn, the formation of the iH&S chart pattern suggests that this prolonged decline may be finally coming to an end.

In the analyst’s chart, this left shoulder of the iH&S structure began forming from 2021 to 2022, experiencing a price peak before a pullback. From 2022 to 2023, a deeper decline occurred, marking the cycle low and the formation of the ‘Head.’ Finally, the right shoulder of the technical pattern was formed between 2024 to 2024, recording a higher low that aligned with the left shoulder.

Lagen’s price chart highlights that the most critical level to watch is the neckline of the iH&S structure, which is approximately $3,978 and acts as the primary resistance area.

How An $18,000 ETH Target Is Possible

Still looking at Lagen’s Ethereum price chart, the analyst suggests that if ETH can surpass the $3,978 resistance level with strong volume, it could validate the Inverse Head and Shoulder pattern and open the door for a rally toward $18,000. Conversely, if Ethereum fails to break above this resistance level, a prolonged consolidation or significant pullback may occur before its next breakout attempt. 

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Lagen predicts that a rejection at the resistance area could see the Ethereum price drop to $1,888 — an important support level which could prevent further declines. A drop to this support would represent a potential 52% dip from the main resistance level and an 8.52% decline from ETH’s current market value of $2,055.

Featured image from Unsplash, chart from Tradingview.com

Ethereum is trading back above the key $2,000 level after spending several volatile weeks attempting to reclaim it. Since late February, ETH has dropped more than 38%, triggering widespread panic as the price broke below major support and briefly dipped under $1,800. The decline sparked fears of a prolonged downtrend, with many questioning whether Ethereum had entered a bear market.

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However, sentiment is beginning to shift. Investors are now looking for signs of recovery as ETH stabilizes and retests important levels. A growing number of analysts believe that the recent volatility may have been a final shakeout before a new uptrend.

Top analyst Ted Pillows shared insights on X, suggesting that Ethereum may be wrapping up its “manipulation phase.” This phase typically features erratic price action designed to exhaust both bulls and bears before the market commits to a clear direction. If the phase ends soon, Ethereum could rebound significantly in the coming weeks.

As ETH hovers near $2,000, the next few sessions will be crucial in determining whether bulls can maintain momentum or if further downside lies ahead.

Ethereum Bulls Face A Test As Expansion Phase Looms

Ethereum is showing early signs of strength as it hovers just above the critical $2,000 mark, a level that has acted as both a psychological and technical battleground for weeks. Bulls are being called into action as the broader market begins to stabilize, with ETH price action hinting at a potential recovery. However, the situation remains fragile, with uncertainty dominating sentiment and no clear trend established yet.

Speculation is split between those anticipating a deeper correction and others betting on a full-scale recovery. For now, Ethereum remains range-bound, and any breakout attempt must be backed by strong conviction to shift momentum. Bulls must defend the $2,000 level and begin targeting higher resistance zones to spark confidence in a sustained uptrend.

Pillows stated that Ethereum is likely exiting what he calls the “manipulation phase” — a confusing, price movement designed to exhaust buyers and sellers. According to Pillows, this phase is nearly over, and Ethereum’s expansion time is about to begin.

A confirmed breakout above the $2,200 level would be the catalyst for a new expansion cycle, potentially sending ETH into higher territory in the weeks ahead. Until then, price action will remain sensitive, with the next few sessions crucial in deciding Ethereum’s trajectory.

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But Bulls Face Key Resistance Ahead

Ethereum is currently trading at $2,070 after managing to reclaim the $2,000 level—a crucial psychological and technical zone that had acted as resistance in recent weeks. This move marks an important step for bulls who are now trying to solidify momentum and prevent further downside. However, the real test lies ahead, as ETH must reclaim the $2,250 level to initiate a true recovery phase.

The $2,250 mark aligns with previous areas of heavy trading activity and could act as the launchpad for a broader uptrend if bulls manage to flip it into support. Successfully retaking this level would likely attract fresh demand and restore investor confidence, especially after the asset shed more than 38% of its value since late February.

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Despite the short-term optimism, downside risks remain. If Ethereum fails to hold above $2,000, the market could experience renewed selling pressure, potentially pushing ETH back toward the $1,800 support level. Such a drop would reinforce bearish sentiment and delay any potential recovery rally.

For now, traders are watching closely to see if Ethereum can build on its current strength and reclaim higher levels in the sessions ahead.

Featured image from Dall-E, chart from TradingView 

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Ethereum (ETH) registered some minor gains in the past week, rising by 2.80%. Nevertheless, the prominent altcoin remains far from breaking out of a downtrend stretching as far back as December. Amid this bearish market state, renowned market analyst Ali Martinez has highlighted critical price levels in deciding if ETH’s correction is over and suitable for a market entry.

Ethereum: A Buying Opportunity Or More Downside Ahead?

In a detailed analysis post on X, Martinez explains that Ethereum has crashed by 57% from its local peak of $4,100 in December. This decline has been attributed to a widespread distribution by large Ethereum holders, especially the whales. Over the past four months, wallets holding 10,000 ETH have declined by 80. Meanwhile, ETH whales i.e. wallets holding 100,000 ETH and above, have offloaded 130,000 ETH within this period.

During ETH’s decline, the Ethereum Spot ETFs have also suffered massive withdrawals as indicated by a net outflow of $760 million in just the last month. Furthermore, investors have transferred 100,000 ETH to investors with intentions to sell in fear of a price loss.

Looking forward, Martinez notes several technical indicators further suggest a downside for Ethereum amid this intense selling pressure. For example, a breakdown from an ascending triangle on the 3-day charts suggests ETH may be headed for a price target of around $1,000.

Meanwhile, the ETH pricing bands have also highlighted $1,440 as another downside target indicating a potential 27.4% decline from current market prices. Interestingly, data from the Cost Basis Distribution correlates with both bearish projections as Ethereum is currently above key support at $1,887. However, a price fall below this level will result in a further decline to lower targets such as $1,440, $1250, and $1,000.

Albeit, Martinez notes there is potential for an ETH market recovery. By analyzing the amount of ETH acquired at each price level, the analyst notes that ETH bulls are facing a serious resistance between $2,250-$2,610. If ETH bulls can push past this resistance, it would invalidate the current bearish market outlook.

Ethereum Price Overview 

At the time of writing, Ethereum was trading at $1,985 reflecting gains of 1.10% in the past day and 2.10% in the past seven days. However, the altcoin is down by 27.32% in the last month. Being the largest altcoin in the market, Ethereum boasts a market cap of $239 billion representing 8.7% of the total crypto market.

Featured image from Ledger Insights, chart from Tradingview

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