Ethereum Forms Potential Inverse Head and Shoulders Pattern on Weekly Chart

• Ethereum’s inverse head and shoulders pattern spans multiple cycles, with a clear structure emerging on higher time frames.

• The recent rebound from $2,860 highlights buyer strength amid reduced selling pressure.

• Market data reveals a $6 million whale long position, supporting recovery with a current market cap of $361.61 billion.

Ethereum inverse head and shoulders pattern emerges on weekly charts, targeting $7,600 amid price recovery to $2,996. Discover key insights on ETH’s bullish signals and market shifts. Stay informed on crypto trends today.

What is the Ethereum Inverse Head and Shoulders Pattern Signaling?

Ethereum inverse head and shoulders pattern is a bullish reversal formation appearing on the weekly chart, indicating a potential shift from bearish to upward momentum after a period of consolidation and pullback. This pattern, spanning mid-2024 to late 2025, features a left shoulder, head, and right shoulder, with the neckline acting as the critical breakout level. As Ethereum’s price stabilizes near $2,996, confirmation of this structure could drive significant gains, targeting around $7,600 based on the pattern’s measured move.

Ethereum trades in a recovering weekly structure following a volatile December start. The price has shown stability, rebounding sharply from the $2,860 region after a liquidity sweep. This movement reflects broader market dynamics where higher time frames display maturing reversal signals, with Ethereum’s market capitalization reaching $361.61 billion, up 8.71% recently.

Source: X

The left shoulder formed in mid-2024 during a notable pullback, establishing the initial interaction with the ascending neckline. This setup provided a foundation for the pattern’s development, as Ethereum’s price tested lower supports before initiating recovery phases. The head of the pattern emerged in early 2025, marking the deepest trough where selling pressure peaked but was met with strong buying interest, leading to a symmetric rally back toward the neckline.

The right shoulder, developing later in 2025, created a higher low compared to the head, demonstrating reduced downside risk. Gradual upward price action in this phase underscored diminishing seller dominance. A breakout above the neckline, accompanied by impulsive weekly candles, would validate the pattern, projecting the price target by adding the head-to-neckline distance to the breakout point, landing near $7,600.

How Has Ethereum’s Recent Price Action Contributed to This Pattern?

Ethereum’s price has exhibited controlled recovery, trading at $2,996.12 as of recent data, with a weekly performance of +2.34%. This follows a multi-day pullback that tested the $2,860–$2,880 support zone, triggered by early December volatility and excess leverage clearance. Trading volume decreased to $21.95–$26.76 billion, suggesting the rebound was driven by selective buyer participation rather than broad market frenzy, which aligns with the pattern’s maturation.

Starting the period near $2,919, Ethereum maintained steady progress through late November, surpassing $3,000 and entering a narrow consolidation. This balance zone preceded the December dip, where price accelerated downward, creating an oversold condition without extreme volume spikes. Such dynamics indicate that the move was primarily liquidation-driven, setting the stage for the V-shaped reversal observed shortly after.

From the $2,860 low, Ethereum quickly reclaimed mid-$2,900s levels, showcasing resilient demand at discounted prices. Market observers, including analysts from Bitcoinsensus, note that this rapid response absorbed liquidity effectively, reinforcing the inverse head and shoulders’ validity. Furthermore, trading activity post-rebound positions Ethereum near key psychological thresholds, with potential to retest $3,000 as the weekly structure aligns favorably.

Supporting this recovery, a notable whale wallet shifted strategy by opening a $6 million long position after closing a short, as reported in market updates from Peter. This repositioning during volatility highlights institutional interest in lower price zones, though it serves as sentiment rather than definitive proof. Overall, these elements contribute to a narrative of controlled bullish development within the established pattern.

Frequently Asked Questions

What is the projected target for Ethereum’s inverse head and shoulders pattern?

The inverse head and shoulders pattern on Ethereum’s weekly chart projects a target near $7,600. This calculation derives from measuring the distance from the head to the neckline and adding it to the breakout point, based on historical pattern performance in cryptocurrency charts.

Why did Ethereum rebound so quickly from the $2,860 level?

Ethereum’s swift rebound from $2,860 stemmed from active demand at oversold levels following a liquidity sweep in early December. Moderate trading volume during the dip indicated liquidations rather than sustained selling, allowing buyers to step in decisively and drive a V-shaped recovery toward $2,996.

Key Takeaways

• Inverse Head and Shoulders Formation: Ethereum’s weekly chart displays a maturing bullish pattern spanning 2024-2025, with a neckline breakout potentially targeting $7,600.
• Recovery Dynamics: The +2.34% weekly gain to $2,996 reflects buyer-led momentum, supported by a $361.61 billion market cap and reduced volume in pullbacks.
• Whale Activity Insight: A $6 million long position by a major wallet signals confidence in lower price zones, aiding the broader reversal narrative.

Conclusion

The Ethereum inverse head and shoulders pattern underscores a pivotal bullish shift on weekly time frames, with recent price action near $2,996 reinforcing its potential. As recovery from the $2,860 dip gains traction amid whale repositioning, this structure highlights evolving market momentum. Investors should monitor neckline breaks for confirmation, positioning Ethereum for possible advances toward $7,600 in the coming cycles.