Ethereum has been consolidating within a large-scale symmetrical pennant formation following its all-time high of $4,851. This long-term structure, which has developed over several years, suggests sustained accumulation within a clearly defined corrective range, bounded by long-standing trendline support and resistance.
After reaching its peak, ETH entered a structured correction that has evolved into what appears to be an ABCDE wave pattern. Currently, the price is developing near point D, approaching the upper boundary of the pennant — a key technical region that may influence the next significant directional move.
On the daily timeframe, ETH appears to be forming an Inverse Head and Shoulders (IH&S) pattern, with the neckline positioned around $2,855. This level has acted as a strong resistance in recent sessions, briefly halting ETH's short-term upside. A sustained breakout above this neckline could potentially validate the IH&S structure, while also signaling a move out of wave D’s upper resistance zone.
Should price face a rejection at either the neckline or the pennant boundary, a retracement toward wave E may develop. This would bring the price into the $1,400–$1,800 support region, which aligns with the long-term ascending trendline, past breakout levels, and several historical reaction zones. This area has acted as a high-confluence demand zone in the past and may once again draw buying interest.
Recent price behavior has shown compressed volatility and signs of increased accumulation on dips, indicating that the market could be preparing for a decisive breakout from the current macro structure. While no direction is guaranteed, a breakout — once confirmed — might mark the beginning of a new market phase.
🔍 Disclaimer: This content is for educational and informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
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