Ethereum forms inverse head and shoulders with $4,200 neckline, signaling a possible move to $6,000.
ETH gains 21% in a week as altcoin inflows rise and Bitcoin dominance drops to 61%.
Despite lower volume, ETH maintains strong momentum and tests key breakout level near $4,200.
Ethereum (ETH) is approaching a critical resistance level that could define the next phase of its market cycle. Currently trading at $3,743.51, ETH has gained 5.11% over the past 24 hours. The price structure and market momentum suggest a breakout above $4,200 could open the way toward $6,000.
Inverse Head and Shoulders Pattern Approaches Confirmation
Ethereum has formed a large inverse head and shoulders pattern, which has developed between mid-2024 and mid-2025, according to analysis prepared by Coinvo. The formation includes a low in early 2025 as the head, with higher lows on either side marking the shoulders. This technical setup is typically seen as a bullish reversal structure.
https://twitter.com/ByCoinvo/status/1946600922576257135
The neckline of this formation, identified near the $4,200 level, has been tested several times without strong rejection. Ethereum's steady climb, with consistent higher lows and breakout attempts, suggests accumulation and growing bullish sentiment. A confirmed move above this neckline could complete the pattern and project a price target of around $6,000.
The daily chart also supports this view. Since May, 2025, the price of Ethereum has increased steadily and recently pushed above 3,700. An indicator of momentum, such as RSI, are still in neutral territory and the MACD readings are positive, which provides possibilities of further movement upwards.
Market Strength and Altcoin Rotation Fuel Optimism
Ethereum’s market capitalization has reached $451.88 billion, while trading volume over the last 24 hours sits at $34.55 billion. Despite a volume decline of 16.87%, ETH has maintained strong price action, suggesting healthy market demand.
Recent shifts in market dynamics show a decline in Bitcoin dominance, which has dropped to 61%. As capital flows into altcoins, Ethereum has outperformed, gaining 21% in a week compared to Bitcoin’s 0.6%.
This rotation supports the idea of Ethereum leading the current altcoin cycle. If Ethereum breaks and holds above the $4,200 neckline, analysts expect further resistance near $5,000 before a possible advance toward the $6,000 level.
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