Ethereum is approaching a critical juncture as several bullish signals begin to align. A clear inverse head and shoulders formation, combined with increasing accumulation and weakening trend rejection, suggests that the market could be preparing for a powerful upward move. With momentum tightening and focus on key levels, ETH now finds itself on the verge of a breakout that could set the stage for its next major rally.
Inverted head and shoulders signal shuffling momentum
According to a recent update shared by crypto analyst Donald Dean, Ethereum could be gearing up for a big change. He pointed to the development of a potential inverse head-and-shoulders pattern, a classic bullish reversal formation that often precedes strong bullish momentum. This emerging structure suggests that ETH could soon move into a more aggressive bullish phase if confirmed.
Dean also highlighted that the weekly chart shows strong support near the 50% Fibonacci retracement level, positioned around $2,750. In addition to the bullish signals, a hammer candle appeared on the weekly time frame, hinting that buying pressure is returning after the recent move lower.
If this trend plays out, Dean noted that Ethereum’s first major target lies at $4,109, a level that would allow ETH to challenge previous resistance/support areas. The reconquest of this region would mark a significant change in dynamics and would reinforce the bullish outlook for the asset.
Beyond that, the next upside target lies near $5,766, which closely matches the golden ratio extension of 1.618 calculated at around $5,793.51. Dean described this confluence as particularly noteworthy, suggesting that if Ethereum exceeds its nearest targets, a larger rally towards this golden ratio level becomes a realistic possibility.
Growing Accumulation Suggests Bulls Are Preparing for Action
In an earlier analysis, LSTRADER reminded its followers of the impressive move from $1,600 to $4,800, noting that this rise was identified in advance through both the ETH chart and the ETH/BTC pattern. The analysis captured the change in dynamics that preceded the rally, reinforcing the interest in tracking key structural signals.
In the current market structure, LSTRADER noted that the chart clearly shows several instances where the trend has been rejected. Despite these rejections, the trend gradually loses strength as accumulation continues to build, a combination that generally reflects growing bullish interest and the potential for a bullish breakout.
However, LSTRADER emphasized that no major moves should be expected until the trendline itself is broken, and confirmation is still needed. For now, patience is key as traders continue to monitor the structure and wait for a decisive change in trend direction.
