Today’s analysis focuses on Ethereum (ETH), which has enjoyed a strong rally over the past several days. The latest move began with a clean breakout above the blue rectangle, a consolidation range that ETH had been trading within. This breakout was a clear bullish signal, confirming strength in the mid-term trend.
However, things have changed in the short term. After the bullish escape, Ethereum formed a head and shoulders pattern, marked clearly with yellow highlights. This classic reversal formation has now been confirmed by a break below the black neckline, activating a short-term sell signal.
With this pattern in play, traders can now look to two potential downside targets:
-
The upper boundary of the blue rectangle, which may now serve as support.
-
The red uptrend line, which has guided Ethereum higher since the previous swing low.
While the short-term pressure points to a retracement, the mid-term outlook remains positive as long as Ethereum holds above the red trendline. A bounce from this trendline would likely reassert the prevailing bullish trend.
In summary, Ethereum presents a short-term selling opportunity within a broader uptrend, offering tactical entries for both bulls and bears — depending on timeframe and risk appetite.