ETH/USD Long-Term Outlook: Head & Shoulders Pattern Forming?
In this analysis, Ethereum (ETH/USD) is showing a classic Inverse Head & Shoulders pattern on the weekly timeframe, a potential bullish reversal structure that could propel prices higher in the mid to long term.
Key Highlights:
Support Levels: Significant confluence of support near $2,475-$3,075, aligning with the neckline and major Fibonacci retracement levels (1.618 and 2.618 zones). This range could serve as a key accumulation zone.
Resistance Levels: Breakout targets extend towards $4,940 (3.618 Fib level) and $6,062 (4.618 Fib level), with an extended target near $7,184 (5.618 Fib).
Trendlines: Long-term ascending trendline remains intact, signaling continued bullish structure since 2020.
Moving Averages: The 50-week and 200-week moving averages are holding as dynamic support, with potential golden cross confirmation.
Volume Profile: Strong volume at critical support areas, suggesting buyer interest.
Indicators:
RSI Divergence: Bullish RSI divergence near oversold levels points to potential momentum shift.
ADX & DMI: Early signs of bullish crossover, with strengthening trend momentum.
Kz RSI Div: Positive divergence and a breakout above 70 may confirm trend continuation.
Bullish Scenario: A clean breakout above $3,800 (neckline) with increasing volume could validate the pattern and push ETH towards the upper Fibonacci targets.
Bearish Risks: Failure to hold the neckline support and a breakdown below $2,475 would invalidate this setup, exposing ETH to deeper corrections.
Let me know your thoughts on this outlook and whether you’d like me to refine it further!
