ethtechnicalsetup

🧠 $ETH forms a head and shoulders pattern: Are we facing a reversal or a continuation?

Ethereum ($ETH ) shows precise technical signals on the chart, as it tests strong resistance around the $4,210 level, coinciding with a potential formation of a head and shoulders pattern, one of the most prominent reversal patterns in technical analysis.

📊 Current technical scenario
- Head: the last peak at $4,217
- Shoulders: two close peaks around $4,210
- Neckline: horizontal support at ~$4,185

🧩 Potential scenarios
1️⃣ Bearish confirmation
Breaking the price below the neckline (~$4,185) with high trading volume could activate the pattern, targeting the following support levels:
→ $4,068 (highest daily level)
→ $4,003 (strong buying area)
→ $3,879 (historical support)

2️⃣ Bullish invalidation
A clear breakout above $4,210 with a strong close would invalidate the pattern, opening the way for the continuation of the bullish trend towards new peaks.

📌 The main trigger for the next move?
Price reaction at the neckline. Breaking it or maintaining it will determine the market direction in the coming days.

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