Ethereum Inverse Head-and-Shoulders Pattern Signals Potential Rally

Ethereum inverse head-and-shoulders pattern is drawing attention as traders spot a familiar but promising setup on the ETH price chart. Ethereum (ETH) appears to be forming a bullish reversal structure that could support a strong upside move if key resistance levels are broken.

Ethereum’s 2021–2022 Chart Pattern Explained

During the 2021–2022 market cycle, Ethereum formed a classic head-and-shoulders pattern that ultimately led to a major downturn. The left shoulder developed around mid-2021, followed by a higher peak later that year that created the head. In early 2022, a right shoulder appeared before ETH broke below its neckline support.

Once that support failed in mid-2022, Ethereum experienced a steep sell-off. Prices dropped by more than 65% in less than two months, marking the end of the previous bullish trend. Traders often reference this period as a textbook example of how reversal patterns can impact price direction.

Ethereum Inverse Head-and-Shoulders Pattern Emerges

Now, Ethereum inverse head-and-shoulders pattern is forming, suggesting a very different outcome. According to market analysts, the left shoulder appeared around mid-2024, while a deeper pullback in late 2024 formed the head. The right shoulder is currently developing in early 2025, completing the structure.

Analyst Highlights Key Ethereum Resistance Zone

A crypto analyst on X notes that the neckline for this inverse head-and-shoulders pattern sits between $4,000 and $4,400. A clean breakout above this zone could confirm the pattern and potentially trigger a larger rally in Ethereum.

The analyst explains that ETH’s structure closely resembles a bullish inverse head-and-shoulders formation, with a breakout possible if price reclaims the $4,000–$4,400 range.

2021-2022 Cycle

➺ $ETH formed head and shoulder pattern
➺ Lost the uptrend and dumped 65% in 2 months

2025-2026 Cycle

➺ ETH has formed inverse head and shoulder pattern

The breakout and pump will be insane. pic.twitter.com/ySSGFgORZj

— Max Crypto (@MaxCrypto) January 20, 2026

Current ETH Price and Market Conditions

At press time, Ethereum trades near $3,100, down over 3% in the last 24 hours and about 1% over the past week. ETH briefly moved above $3,300 over the weekend before pulling back, losing roughly 5% amid broader market pressure tied to global trade concerns.

Despite short-term volatility, the Ethereum inverse head-and-shoulders pattern remains a key structure traders are watching closely.

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