rewrite this title Ethereum Forms Inverse H&S – Bulls Eye Breakout Above $2,700 Level | Bitcoinist.com

Ethereum is trading around $2,500 after failing to reclaim the $2,700 level during the week. Despite the rejection, market sentiment remains cautiously optimistic, with many analysts viewing the recent pullback as part of a healthy consolidation phase. After weeks of volatile swings, ETH appears to be stabilizing above key support levels, potentially setting the stage for a stronger breakout in the weeks ahead.

Top analyst Ted Pillows shared a technical outlook suggesting that Ethereum may be forming an inverse head and shoulders pattern on the 12-hour chart—a classic bullish reversal signal. According to Pillows, this structure could act as a springboard for ETH to retest and potentially break above the $2,700 level.

For now, ETH’s ability to hold the $2,500 zone is a positive sign, as bulls look to defend key support and build momentum. If the pattern confirms, the next leg higher could unfold quickly. However, failure to hold current levels would likely invite renewed selling pressure. As the market awaits further confirmation, Ethereum’s technical setup continues attracting attention from traders eyeing the next move.

Ethereum Needs To Lead To Confirm Altseason

While many analysts continue to call for an incoming altseason, most agree on one key requirement: Ethereum must reclaim higher levels above $3,000 to lead the charge. As the second-largest cryptocurrency by market cap, ETH historically acts as the gateway for broader altcoin rallies. Without its participation, the likelihood of a full-scale altseason remains low.

Currently, Ethereum is trading near $2,500, consolidating after a failed attempt to break through the $2,700 resistance zone earlier in the week. Despite this rejection, optimism remains high. Analysts like Ted Pillows believe ETH is simply setting the stage for a larger breakout. In his latest analysis, Pillows highlights a developing inverse head and shoulders pattern on the 12-hour chart—an established bullish structure often preceding trend reversals.

According to Pillows, a breakout above the $2,700 neckline would be a strong technical confirmation, likely triggering a rapid move toward the $3,000 level. “If ETH closes above $2,700 with momentum, it won’t take long to reach $3,000,” he noted.

Many also believe Ethereum’s explosive move could come shortly after Bitcoin finishes its impulsive push above all-time highs. Once BTC cools down, capital may rotate into ETH and large-cap altcoins, fueling a new leg higher across the board.

Price Action Details: Key Levels To Watch

Ethereum is currently trading at $2,512 on the 4-hour chart after failing to break through the $2,700 resistance earlier in the week. The chart shows ETH consolidating between $2,470 and $2,700, forming what appears to be the right shoulder of a developing inverse head and shoulders pattern—a potential bullish reversal setup that traders are watching closely.

The 34 EMA (green) sits at $2,557, and ETH is now trading just below it, signaling short-term weakness. However, the 100 SMA (purple) at $2,511 is offering immediate support, and bulls will need to defend this level to avoid a deeper correction toward the 200 SMA, currently near $2,156.

Volume has declined during the recent pullback, suggesting that selling pressure may be losing steam. As long as ETH holds above $2,470 and avoids a breakdown below the neckline of the pattern, the setup remains valid. A confirmed breakout above $2,700 would likely trigger a quick move toward the psychological $3,000 level.

The next few sessions will be crucial. Ethereum needs to reclaim the 34 EMA and gain momentum above $2,600 to confirm strength. Otherwise, a failure to hold support could delay the anticipated breakout and stall altseason hopes.

Featured image from Dall-E, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.