Ethereum is approaching a technically critical inflection point — one that has been quietly developing over many months, not days or weeks.

On the ETHUSD daily chart, price action has been methodically carving out a classic Head & Shoulders (H&S) formation, one of the most historically reliable macro bearish reversal structures in technical analysis.

Where We Are Now

ETH is currently shaping the Right Shoulder of this formation.

What makes this especially important is where this Right Shoulder is forming:

It remains capped below the 1D MA200 (orange trend line)

This moving average has repeatedly acted as dynamic resistance

Structurally, this zone often serves as the final rejection point before a larger trend transition

In many past cycles, this exact setup has marked the handoff from distribution into the second stage of a bear cycle.

The Line That Matters Most

While price may continue to chop in the short term, the Higher-Lows trend line — acting as the neckline support of the H&S pattern — is the real trigger.

👉 A decisive break below this support automatically activates the next selling phase, regardless of short-term bounces or sentiment shifts.

At that point, the pattern becomes technically confirmed.

Measured Target & Fibonacci Confluence

Classic Head & Shoulders structures typically resolve toward the 2.0 Fibonacci extension measured from the Shoulder’s low.

Here’s where things get interesting:

The 2.0 Fib extension aligns precisely with the $1,385 support

This level also corresponds to the April 09, 2025 cycle low

That creates a rare triple confluence:

Pattern target

Fibonacci projection

Major historical demand zone

Markets respect confluence — especially on higher timeframes.

Macro Expectation

As we move closer toward year-end, the technical roadmap suggests that $1,400 is not a worst-case scenario — it’s a statistically reasonable expectation if this structure plays out fully.

This is not about panic. This is not about headlines. This is about structure, symmetry, and probability.

Final Thoughts

Ethereum is not “crashing” — it is completing a long-term formation that has been building quietly while most traders focused on short-term noise.

Those who understand where we are in the cycle will be positioned. Those who don’t will be reacting.

📌 If you found this breakdown useful:

👍 LIKE

✅ FOLLOW

🙌 SHARE

✍ COMMENT

Tickers & Tags:

$ETH #ETH #Ethereum #ETHUSD #ETHUSDT #CryptoAnalysis #MarketStructure #TradingSignals