đź“Š Pattern Overview: Head and Shoulders
Left Shoulder: Formed around July 24th, marked by a high near $3,800 followed by a retracement.
Head: A higher peak on July 27th, topping out near $3,888, then pulling back again.
Right Shoulder: Currently anticipated, projected to form around the same height as the left shoulder, with a potential completion near $3,800 before another decline.
Neckline: Flat support line around $3,544, acting as the crucial level that, if broken, confirms the pattern.
🧠Interpretation
The Head and Shoulders is generally interpreted as a trend reversal pattern. In this context, Ethereum has been in a strong uptrend, but the pattern signals a potential topping out and shift toward a bearish phase.
If ETH breaks below the neckline at $3,544 with volume confirmation, it would signal that bulls are losing control, and sellers may take over.
📉 Bearish Breakdown Target
The theoretical downside target can be calculated by measuring the distance from the Head to the Neckline and projecting it downward from the neckline:
Head peak: ~$3,888
Neckline: ~$3,544
Height: ~$344
đź“Ś Target after breakdown:
$3,544 - $344 = $3,200 (approx.), with interim support levels around:
$3,332 (horizontal support)
$3,112
$2,917
These levels might act as pause points or bounce zones if the breakdown unfolds.
🟢 Invalidation Scenario
If Ethereum invalidates the pattern by:
Breaking above the Head level ($3,888) and holding
Sustaining higher highs with strong volume
Then the bearish thesis would be invalidated, and bulls may aim for continuation toward $4,000+ levels.
🧩 Strategic Takeaways
Aggressive traders might short the neckline break at $3,544, with stops just above the right shoulder (~$3,800).
Conservative traders may wait for a retest of the neckline post-breakdown.
Risk management is key, especially in crypto markets, which are known for head fakes and false breakouts.
⏳ Final Thought
This setup doesn't guarantee a drop—it merely increases the probability of a reversal. Watch for volume on the neckline break and monitor how price reacts at key support levels.
DYOR before taking a trade
Left Shoulder: Formed around July 24th, marked by a high near $3,800 followed by a retracement.
Head: A higher peak on July 27th, topping out near $3,888, then pulling back again.
Right Shoulder: Currently anticipated, projected to form around the same height as the left shoulder, with a potential completion near $3,800 before another decline.
Neckline: Flat support line around $3,544, acting as the crucial level that, if broken, confirms the pattern.
🧠Interpretation
The Head and Shoulders is generally interpreted as a trend reversal pattern. In this context, Ethereum has been in a strong uptrend, but the pattern signals a potential topping out and shift toward a bearish phase.
If ETH breaks below the neckline at $3,544 with volume confirmation, it would signal that bulls are losing control, and sellers may take over.
📉 Bearish Breakdown Target
The theoretical downside target can be calculated by measuring the distance from the Head to the Neckline and projecting it downward from the neckline:
Head peak: ~$3,888
Neckline: ~$3,544
Height: ~$344
đź“Ś Target after breakdown:
$3,544 - $344 = $3,200 (approx.), with interim support levels around:
$3,332 (horizontal support)
$3,112
$2,917
These levels might act as pause points or bounce zones if the breakdown unfolds.
🟢 Invalidation Scenario
If Ethereum invalidates the pattern by:
Breaking above the Head level ($3,888) and holding
Sustaining higher highs with strong volume
Then the bearish thesis would be invalidated, and bulls may aim for continuation toward $4,000+ levels.
🧩 Strategic Takeaways
Aggressive traders might short the neckline break at $3,544, with stops just above the right shoulder (~$3,800).
Conservative traders may wait for a retest of the neckline post-breakdown.
Risk management is key, especially in crypto markets, which are known for head fakes and false breakouts.
⏳ Final Thought
This setup doesn't guarantee a drop—it merely increases the probability of a reversal. Watch for volume on the neckline break and monitor how price reacts at key support levels.
DYOR before taking a trade
Declinazione di responsabilitĂ
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.
Declinazione di responsabilitĂ
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.