Ether is approaching a critical moment when many bullish signals are starting to come together. A clear Inverse Head & Shoulders formation combined with increasing accumulation and rejection of a weakening trend suggests that the market may be preparing for a robust upward move. With momentum tightening and key levels sharpening, ETH is now on the brink of a breakout that could set the stage for another large rally.
An inverted head and shoulders signal an boost in dynamics
According to last update common cryptocurrency analyst Donald Dean, Ethereum may be preparing for a significant move. He highlighted the development of a potential head and shoulders reverse pattern, a classic bullish reversal pattern that often precedes a robust bullish impulse. This emerging structure suggests that ETH could soon move into a more aggressive bullish phase if confirmed.
Dean also noted that the weekly chart shows solid support near the 50% Fibonacci retracement level located near $2,750. In addition to the bullish signals, a hammer candle appeared on the weekly time horizon, indicating the return of buying pressure after the recent downward move.
If the pattern works, Dean noted that Ethereum’s first major target is $4,109, a level that would allow ETH to break past previous resistance/support zones. Reclaiming this region would represent a significant change in dynamics and strengthen the bullish outlook for this asset.
Apart from this, the next upside target is located near $5,766, which is closely aligned with the golden ratio extension at 1.618 calculated to be around $5,793.51. Dean described this convergence as particularly noteworthy, suggesting that if Ethereum breaks above its near-term targets, a larger rally towards the golden ratio level becomes a realistic possibility.
Increasing accumulation suggests that bulls are preparing to act
In the earlier one analysisLSTRADER reminded followers of the impressive move from $1,600 to $4,800, noting that this boost was identified in advance from both the ETH chart and the ETH/BTC setup. The analysis took into account the change in dynamics leading up to growth, which reinforced the value of tracking key structural signals.
In the current market structure, LSTRADER noted that the chart clearly shows many instances where the trend has been rejected. Despite these rejections, the trend continues to lose strength while accumulation continues to boost, which usually reflects growing bull interest and the potential for a breakout to the upside.
LSTRADER stressed, however, that no major move should be assumed until the trendline itself has been broken and confirmation is still required. For now, patience is key as investors continue to monitor the structure and wait for a decisive change in the direction of the trend.
