Ethereum Head & Shoulders Pattern Reveals New Target, A Crash Below $4,000 Is Coming

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Ah, Ethereum. Once the shining star of the crypto cosmos, now sliding back into the abyss like a teenager who just got their first credit card. The digital currency has slipped into what seems like another bearish phase after failing to reclaim a critical level. With technical indicators pointing downward, the once-stalwart Ethereum price now teeters on the brink of plummeting below $4,000, a level which the bulls fought tooth and nail to achieve. It’s almost as if they had to battle a dragon to earn it, only for it to slip through their fingers like sand.

What This Head And Shoulders Pattern Means For Ethereum Price

Crypto analyst Meliketrader has shared a chart on TradingView that’s about as grim as a rainy Tuesday afternoon. It shows the formation of a classic Head and Shoulders pattern on the Ethereum 4-hour chart. The left shoulder was visible back in August, with the head popping up just in time for a dramatic end-of-month entrance. The right shoulder made its appearance in mid-September, adding a certain ‘je ne sais quoi’ to the whole mess.

Now, for those who don’t know, a Head and Shoulders pattern is like a ticking time bomb for crypto enthusiasts. Once the formation is complete, it typically signals a downtrend. And what do you know, after the pattern was fully realized, Ethereum experienced a massive bearish candle that took out the neckline. It was as if the bulls said, “No thanks, we’re not sticking around for the afterparty.” Once the neckline-sitting comfortably between $4,200 and $4,400-was broken, it was clear: more downside was imminent.

The neckline, that fateful zone, is now the battleground. Ethereum is currently testing this level once again. If it gets rejected, well, get ready for another plunge. A further crash could send the price plummeting below $4,000. Because, let’s face it, there’s not much support at this level. Analyst Meliketrader has set targets around $3,850, with a range between $3,700 and $3,900. It’s as if the market is magnetically drawn to disaster. “This level also lines up with the last major resistance zone, so it’s a natural magnet,” Meliketrader mused, clearly a fan of the inevitable.

But wait! It’s not all doom and gloom. The RSI-those three little letters that hold so much power-has shown divergence near the head of the formation. Ethereum has also dipped into the oversold zone, a likely sign that momentum is starting to slow down. In other words, Ethereum could take a breather, like a marathon runner who’s just tripped over their own shoelaces. The moment of truth could be upon us.

Hope For The Bulls

So, what’s the glimmer of hope for the bulls? Well, should Ethereum rise from the ashes, there would need to be a miraculous breakout above the neckline at $4,320 and $4,400. If the price manages to close above this zone with any conviction, then the Head and Shoulders thesis could be thrown out the window, and the bulls may have a chance at redemption.

If this happens, Ethereum could see a significant bounce-like a stock market rebound after a week of disappointing earnings reports. After all, it is in oversold territory, so there’s potential for a turn. But before you start popping champagne bottles, dear investor, be sure to size your positions with caution. Risk management is key, especially in the ever-volatile world of crypto.

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2025-09-25 17:04