Summary
Ethereum is forming a giant inverse head and shoulders pattern on the weekly chart, hinting at a massive bullish reversal. With strong whale accumulation and improving technical indicators, analysts predict ETH could target $8,000–$10,000 soon and even $20,000 in the longer term. Key resistance lies near $3,800.
Ethereum (ETH) is exhibiting some promising technical indicators that may signal a significant price upside in the coming months. With ETH trading at approximately $1,804, the delay in recovery was predominantly due to slow price action resulting from excessive selling in the downtrend.
The weekly chart displays a massive inverse head-and-shoulders pattern, one of those classic formations that sets the stage for major bullish breakouts. This pattern may pave the way for to reach new highs, with targets even aiming for the $20,000 mark in the distant future.
ETH Price Approaches Critical Resistance: Is a Rally on the Horizon?
Ethereum’s price action over the last few years has been heavily volatile, but structurally, it has formed a massive inverse head and shoulders pattern on the weekly timeframe:
The left shoulder formed during the mid-2021 correction.
The head developed during the deep bottom in mid-2022 when dropped below $1,000.
The right shoulder is currently in progress, having bounced from recent lows near $1,750.
ETH is now pushing up toward the critical resistance near $1,820–$1,850, which corresponds to the 23.6% Fibonacci retracement. A breakout above this region would likely accelerate bullish momentum.
The weekly RSI is at 37.72, indicating that ETH has not yet entered overbought territory. It has not signaled strong bullish momentum, but there is considerable room for the upside before it reaches overbought levels, thus supporting potential rallies.
The MACD remains bearish for the moment, with the MACD line currently at -283.55 and the signal at -369.40. Nevertheless, the histogram displays characteristics of contraction, suggesting that selling pressure is diminishing. Should the price maintain its upward surge, a bullish crossover could form in the weeks ahead.
Inverse Head and Shoulders Pattern and Breakout Scenario
The pattern on the chart, one of the most trusted technical setups, confirms a typical textbook formation, with a neckline around the $3,800-$4,000 range.
Breakout Scenario:
A above $3,800-$4,000, accompanied by substantial volume, will likely spark a rally towards the $8,000-$10,000 range.
The total measure shifts from the bottom to the neckline, indicating that Ethereum's price could double or triple from its current level.
In a bull market heavily supported by the approval of ETFs, institutional interest, and widespread adoption in the ecosystem, Ethereum could even have its sights set on $20,000.
Currently, however, until it breaks out, ETH will likely remain within the broad consolidation zone of $1,750 to $2,000.
Analysts' Opinions: Van Lagen’s $20K Ethereum Prediction
According to analyst , Ethereum could be on the verge of a significant breakout. In his recent technical analysis, Van Lagen highlights a massive 4-year inverse Head and Shoulders pattern developing on the ETH weekly chart. This classic reversal formation suggests a long-term bullish structure is in play. If confirmed, Van Lagen believes the pattern could send ETH to an ambitious $20,000 target in the following market cycle.
Price Targets
Ethereum faces key resistance at $2,876, $3,821, and the previous all-time high near $4,881. A breakout above the $3,800 neckline could drive ETH toward $8,000-$10,000, and possibly $20,000 in a longer bull cycle.
If rejected, support levels to watch are $1,750 and $1,400.
Whale Activity
The on-chain data indicate a noticeable surge in on Ethereum. Over 640,000 ETH have reportedly flowed into wallets that follow a highly strict accumulation strategy, marking the highest flow into such wallets since 2018. Furthermore, a crypto whale has resold an OTC purchase of 30,000 ETH through liquidity provider Wintermute for $54 million.
While such pronounced whale activity may imply they are gaining confidence in Ethereum's long-term prospects, it may also suggest a possible bullish trend.
