ethtechnicalsetup

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

Ethereum ($ETH ) shows precise technical signals on the chart, testing 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 closely spaced peaks around $4,210
- Neckline: Horizontal support at ~ $4,185

🧩 Possible scenarios
1️⃣ Bearish confirmation
A price break 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 negates the pattern, opening the way for a continuation of the bullish trend towards new peaks.

📌 The main catalyst for the upcoming movement?
Price reaction at the neckline. Breaking it or maintaining it will determine market direction in the coming days.

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