Ethereum investors are at a breaking point. With the cryptocurrency losing 35% from its recent peak of $4,062, traders are watching closely to see if ETH can regain momentum or if the price will plummet to $1,600 before any recovery. Right now, Ethereum sits at $2,657—up 0.41% in the past 24 hours but still down 16% over the past week. And the charts? They tell a story of uncertainty, with bulls and bears fighting for control.
Ethereum’s Daily Chart Hints at a Potential Reversal
A key pattern has emerged in Ethereum’s daily timeframe: the inverted head-and-shoulders formation. This pattern, often seen as a sign of trend reversal, occurs when an asset forms three key lows—the left shoulder, the head, and the right shoulder—before making a push higher.
The catch? The right shoulder might not be fully formed yet. Ethereum could still slide to $1,600 to complete the structure before any real bounce. But even if that happens, it won’t be enough. The real test lies at the neckline—$4,000 resistance. Only a strong breakout above this level would confirm a potential rally toward $7,300.
One thing is clear: The battle for Ethereum’s next direction is far from over.
Ethereum on the 4-Hour Chart: A Tug-of-War Between Bulls and Bears
Zooming into the 4-hour timeframe, the sentiment shifts slightly. Instead of the inverted head-and-shoulders pattern, an ascending triangle has appeared.
This setup suggests that Ethereum is testing support levels and could be coiling up for a move. However, there are a few critical factors to consider:
- Ethereum is hovering around the triangle’s support trendline, meaning price action remains delicate.
- A bounce from here could trigger a retest of the $4,000 resistance.
- If ETH breaks below the support, the path to $1,600 opens up quickly.
This level of price compression suggests that volatility is inevitable. Whether Ethereum heads up or down will largely depend on which side—bulls or bears—can take control first.
The 1-Hour Chart Signals Trouble for Bulls
Drilling down even further, the 1-hour chart paints a more concerning picture for bullish traders. A clear pattern of lower highs and lower lows has emerged, indicating that sellers are still in control.
The area to watch? The $2,500 to $2,100 support zone. If buyers step in at these levels, Ethereum might have a shot at stabilization. But if bears manage to break through, the next stop is $1,600 before any potential reversal can be considered.
What does this mean for investors? Short-term traders will be looking for a bounce within the $2,500 to $2,100 range, while longer-term holders might wait for a definitive move before making decisions.
What’s Next for Ethereum?
Ethereum’s price action is at a crucial moment, with multiple technical indicators suggesting that both upside and downside moves are possible. Here’s what to keep an eye on:
- Breakout or Breakdown? A close above $4,000 would be the first sign of a true bullish reversal, while a drop below $2,100 would strengthen the bearish case.
- Key Support Levels: If ETH fails to hold above $2,500, the risk of a drop to $1,600 increases significantly.
- Market Catalysts: External factors such as macroeconomic trends, regulatory updates, or Bitcoin movements could heavily influence Ethereum’s next move.
For now, Ethereum traders will need to stay cautious, as the battle between bulls and bears intensifies.
