Ethereum (ETH) is currently forming an inverse head-and-shoulders pattern, which could lead to a significant breakout as it approaches crucial resistance in the $4,000 to $4,400 range.

Price Movement Analysis

In 2021 and early 2022, Ethereum’s price movement displayed a classic head-and-shoulders pattern, characterized by a peak and subsequent decline, leading to over a 65% drop in just two months. In contrast, the ongoing inverse head-and-shoulders setup offers a potentially bullish outlook that traders are closely watching.

2021-2022 Cycle
➺ ETH displayed a head-and-shoulder pattern
➺ The market saw a 65% decline.

2025-2026 Cycle
➺ Now we’re witnessing an inverse head-and-shoulder pattern, indicating a forthcoming breakout.

As of now, ETH is trading at approximately $3,100, having experienced a drop of over 3% in the last day and around 5% since the weekend, owing to increased market pressure linked to global trade issues.

Analyst Insights

Market analysts, including CW, suggest that the price may dip to fill a gap near $3,000 before a potential rebound. Additionally, major investments into Ethereum have been noted, with Bitmine’s $14.6 billion investment last year still showing signs of quiet accumulating rather than active trading in 2026.

Maartunn:
“Bitmine invested significantly last year but is currently inactive as of this year.”

Moreover, insights from CryptoQuant’s OnChain indicate an evolving narrative around Ethereum’s institutional interest, mapping it alongside its past price movements and regulatory shifts.

This article highlights the emerging patterns in Ethereum’s price and the implications they hold for future market movements.