Ethereum Rises but a Head-and-Shoulders Pattern Risks a 20% Drop

Beincrypto reports Ethereum is rising again—up over 2% in the past 24 hours and positive for the month—but the rebound sits inside a fragile head-and-shoulders structure that keeps downside risk. On the daily chart the head-and-shoulders pattern remains active, with the January 6 peak forming the right shoulder and the neckline risk zone around $2,880.

Short-term holder NUPL is in the capitulation zone but rising toward monthly highs, increasing the chance of profit-taking, while HODL Waves show the 1-week to 1-month cohort fell from about 11.5% of supply in mid-December to roughly 3.9% now. Money Flow Index shows a bullish divergence signalling dip buying, and the 6- to 12-month holder group rose from about 14.7% to roughly 16.2% since late December, which helps absorb selling pressure.

The most important downside level is $2,880: a daily close below it would activate the full head-and-shoulders pattern and open the door to roughly a 20% dip based on the measured move from the head to the neckline. Key resistance sits between $3,090 and $3,110 (average $3,100), where about 1.44 million ETH last changed hands; failure to hold that area would increase downside toward $2,970 and then $2,880.

Key Topics

Crypto, Ethereum, Money Flow Index, Nupl, Hodl Waves, Glassnode