#Ethereum Price Analysis: Short-Term Correction Looms Despite Strong UptrendEthereum (ETH) has been on a remarkable rally, reaching price levels not seen since late 2021. However, recent technical developments suggest the possibility of a short-term correction before the next upward surge. A Head and Shoulders (H&S) pattern is beginning to form on the daily chart, hinting that the market may be preparing for a brief pullback to test key support levels.Despite these short-term concerns, Ethereum’s macro trend remains decisively bullish, with strong fundamentals and technical structure still favoring long-term gains.Ethereum’s Technical Setup: Head and Shoulders Formation in PlayThe most notable development in Ethereum’s current chart structure is the emergence of a Head and Shoulders (H&S) pattern, a classic reversal signal in technical analysis.

Neckline Support: The neckline sits around $4,130, acting as the immediate short-term floor for $ETH /USD.

Price Action: Ethereum is currently trading just above this neckline after climbing to its highest point since December 2021.

Trend Context: The broader uptrend remains intact, supported by a consistent upward-sloping trendline drawn from previous swing lows, signaling that buyers are still in control on higher timeframes.

Potential Breakdown Scenario: Where Could Ethereum Pull Back?While the uptrend remains dominant, failure to hold the $4,130 support could spark additional selling pressure.Bearish Targets:

Primary Zone: $4,050–$4,100 — This range aligns with Ethereum’s ascending trendline, which has served as dynamic support during its current rally.

Deeper Retracement Risk: A confirmed break below $4,050 could invite a more pronounced correction, though such a move would likely require negative market sentiment or a decline in Bitcoin’s price action to validate.

Immediate Support: $4,130 — The neckline of the H&S pattern.

Secondary Support: $4,050–$4,100 — The ascending trendline support range.

source: 24crypto.news