Ethereum’s Head and Shoulders: Will the Bulls Rise Again or Just Keep Napping?

by

Ah, Ethereum! The cryptocurrency that’s like that friend who promises to show up for dinner but then mysteriously vanishes into thin air. Recently, it decided to throw us a curveball by forming a classic Head and Shoulders pattern on the 4-hour chart. Yes, folks, it’s as dramatic as it sounds! After lounging around the $2,500 mark like a cat in a sunbeam, Ethereum decided to take a nosedive below the neckline support level just as the week was wrapping up. Now, we’re left wondering: is this the start of a bearish saga, or do the bulls still have a fighting chance to reclaim their territory? 🐂💪

Head & Shoulders Pattern Confirmed After Breakdown Below $2,480

Now, let’s talk about this Head and Shoulders pattern, which is basically the Mona Lisa of technical analysis. It’s so recognizable that even your grandma could spot it. This masterpiece was first unveiled by the crypto oracle MelikaTrader94 on TradingView. The pattern features a left shoulder, a head that’s peeking above $2,700 like it’s trying to get a better view, and a right shoulder that decided to stop by around $2,650. The neckline, which is the emotional support of this whole affair, was breached during Ethereum’s recent plunge to $2,380. Talk about a dramatic plot twist!

After this little escapade, Ethereum tried to reclaim its lost glory and is currently giving the neckline area another go. This retest around $2,500 is crucial. If it fails to bounce back above this level, we might just validate the bearish setup and watch Ethereum tumble down to the next support zone. It’s like watching a soap opera, but with more numbers and less romance. 📉

According to our trusty analyst MelikaTrader94, the price target from this Head and Shoulders breakdown before any significant rebound can occur is nestled comfortably between $2,200 and $2,250. So, if you’re looking for a cozy spot to land, that’s it! 🏡

Chart Image From TradingView: MelikaTrader94

Bulls Must Reclaim $2,650 To Invalidate Bearish Setup

Now, let’s not throw in the towel just yet! The $2,200 region is looking like a likely landing zone, not just because it’s a nice round number, but because it aligns with the measured move of our beloved Head and Shoulders pattern. It’s also reminiscent of an order block from May 9, when Ethereum was feeling particularly sprightly above $2,000. So, it’s got some technical relevance going for it!

However, the situation isn’t entirely doom and gloom. The path forward for Ethereum bulls is as clear as mud but still possible. The first step to invalidate the bearish setup is to decisively reclaim the neckline around $2,500. And if they can break back above the right shoulder level around $2,650, we might just see the Head and Shoulders pattern invalidated, paving the way for a new pattern to emerge. It’s like a game of musical chairs, but with more volatility! 🎶

A successful bullish reclaim would not only nullify the bearish pattern but could also spark a renewed interest in retesting the $2,700 to $2,800 zone, which corresponds to the peak of the head in our little drama. Until that glorious recovery happens, though, the Ethereum price could take a nosedive at any moment. So, hold onto your hats, folks!

As of now, Ethereum is trading at a modest $2,510. Let’s see where this rollercoaster takes us next!

Read More

2025-06-08 13:00