Ethereum Price Analysis: #Short -Term #Correction Looms Despite Strong Uptrend

Ethereum ($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 Play

The 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?

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