Ethereum: Head and Shoulders Pattern Flags Breakdown Risk

Trader Tardigrade flagged a potential bearish Head and Shoulders on the Ethereum daily chart, with the neckline at $2390 and invalidation level at $2776.

Price sits at $2518.25 on the 4h chart inside a bearish structure defined by the EMA50 at $2563.33 and EMA200 at $2579.06 acting as overhead resistance. The MACD golden cross at -6.03 hints at building momentum while RSI at 44.28 remains neutral, and price trades inside the Bollinger Bands with upper resistance at $2562.31 and lower support at $2470.27. A rejection from the upper band near the EMA50 could drive a test of the lower band before any sustained move higher.