Is ETH About to Finally Break $2.6K?

Ethereum is in a crucial phase, with an inverted head and shoulders pattern forming on the daily chart and a double bottom pattern on the 4-hour chart, both pointing towards the possibility of a slight bullish reversal.

The $2.7k neckline and the $2.1k support level will be key areas to watch as a break or breakdown will determine the next major direction.

By Shayan

The daily chart

Ethereum is going through a downward consolidation phase, with no clear directional bias emerging recently. However, a major inverted head and shoulders pattern has formed near the $2.1 thousand support zone, a critical level where buyers have managed to hold.

This pattern is usually a bullish reversal signal, suggesting that a shift to upside momentum may be on the horizon, especially if ETH can break the low, which is around 2.7 thousand dollars

Ethereum has roughly recovered the midpoint of the multi-month channel, which is around $2.5K. If this breakout proves valid, the next focus for buyers will move to the neckline of the inverted head and shoulders pattern at $2.7k. A breakthrough to this level could solidify a bullish reversal, potentially targeting the $3,000 resistance zone in the near term.

Source: TradingView The 4-hour chart

On the 4-hour chart, Ethereum sellers have struggled to push the price below the lower boundary of the rising flag pattern, which is near $2.3K. This dynamic support level has been tested several times, and a breach here could trigger a long pressure event, sending the price quickly into the $2.1K support region. However, Ethereum has also formed a double bottom pattern in this time frame, which usually indicates a short-term bullish reversal.

The price is currently bounded between the ascending flag support and a critical resistance zone defined by the $0.5-$2.6K Fibonacci level and the $0.618-$2.8K Fibonacci level. Ethereum will likely continue to consolidate within this closed range until a decisive break occurs, either to the upside or downside.

Source: TradingView

By Shayan

Ethereum is currently stuck in a price range between $2.1k and $2.7k, and a detailed look at Binance’s liquidation heatmap reveals key liquidity zones that could influence an impending breakout. The heat map shows regions of concentrated liquidity, such as stop-loss orders and liquidation levels, which are primarily driven by larger market participants, including whales.

The cryptocurrency is facing a period of slight consolidation with minimal volatility, reflecting the balance between buyers and sellers. On the downside, the $2,000 region is strongly defended by whales and institutional traders, as evidenced by the significant pools of liquidity concentrated in this area. On the other hand, the resistance zone of $2.8 thousand represents a formidable barrier as it contains a significant amount of liquidity.

This concentration of liquidity suggests that many traders, especially the big ones, have placed their liquidation points around this price level, making it critical. A break in either direction could lead to a cascade of liquidation, triggering a chain reaction of stop-loss orders and liquidations that could amplify the prevailing trend.

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