Ethereum is flashing two very different technical signals across short term and long term charts. One points to breakdown risk below support, while the other shows a larger bullish structure still holding. Ethereum Risks Deeper Drop as Chart Signals Head and Shoulders Breakdown Ethereum showed fresh weakness on the 4 hour chart after a trader on X flagged a possible head and shoulders pattern and warned that a break below $2,040 could trigger a sharper selloff. The chart, shared by Ted Pillows, shows ETHUSD on Coinbase trading near $2,082 while testing a marked support zone between roughly $2,040 and $2,080. The structure highlights three peaks, including a higher middle peak and two lower shoulders, which traders often watch as a possible reversal setup after an upward move. Ethereum Head and Shoulders Pattern. Source: Ted Pillows According to the chart, Ethereum first pushed above $2,300 before losing momentum and sliding lower. It then formed a smaller right shoulder near the $2,160 area before dropping back toward support. As a result, the market now appears to be sitting close to the neckline area that could decide the next move. Ted Pillows wrote that Ethereum “seems to be forming head and shoulder pattern” and added that a loss of the $2,040 level could lead to a “massive dump.” That view reflects a common technical reading, since a confirmed break below neckline support in a head and shoulders pattern often signals further downside pressure. For now, the highlighted support zone remains the main level to watch. If buyers hold that area, Ethereum could avoid a full breakdown and attempt another short term rebound. However, if selling pressure pushes the price below $2,040, the bearish pattern may strengthen and increase the risk of a deeper correction. The chart does not confirm the breakdown yet. Instead, it shows Ethereum testing a critical level after several failed attempts to regain higher ground. Therefore, traders are likely watching whether the current support zone holds or gives way in the next sessions. Ethereum Weekly Chart Shows Ascending Triangle as Key Support Holds Ethereum appears to be trading inside a long term ascending triangle on the weekly chart, according to analysis shared by Ali Charts, with the recent move toward $1,800 marking a key reaction point along the structure’s rising support trendline. Ethereum Ascending Triangle Weekly Chart. Source: Ali Charts The chart outlines a multi year setup in which Ethereum has repeatedly formed higher lows while facing a horizontal resistance area near $4,900. That pattern often signals an ascending triangle, a structure traders watch for signs of pressure building beneath resistance. In this case, the rising lower boundary has remained intact across several pullbacks since 2023. Ali Charts said the move toward $1,800 aligned with the ascending trendline and served as a critical reaction point. The rebound from that area suggests buyers defended the lower boundary again, keeping the broader chart structure in place for now. As a result, the trendline remains the most important support level in the current setup. Meanwhile, the flat resistance zone near $4,900 continues to act as the main ceiling on the chart. Ethereum has failed to clear that area in prior attempts, which makes it the key breakout level in this formation. Therefore, traders watching the pattern would likely look for a decisive move above that barrier before treating the bullish setup as confirmed. The chart also includes a projected path that extends beyond the triangle and points toward a possible move to $10,000. However, that remains a technical scenario rather than a confirmed outcome. For now, the chart shows Ethereum holding a major support line inside a multi year triangle while resistance near $4,900 continues to define the upper boundary.
