Ethereum Eyes $3K as Inverse Head and Shoulders Pattern Takes Shape

Ethereum forms inverse head and shoulders; breakout above $2,700 could trigger $3,000 target.

ETH open interest rises to $14.6B, showing growing trader confidence and bullish positioning.

Holding $2,470–$2,500 support keeps breakout setup valid; RSI near 60 signals further room to climb.

Ethereum is trading near $2,500 after pulling back from the $2,700 resistance earlier this week. Analysts are watching closely as the altcoin forms an inverse head and shoulders pattern. This setup may mark the beginning of a breakout, especially if ETH reclaims the $2,700 level with strong volume and momentum.

Inverse Head and Shoulders Points to Breakout Potential

According to analysis prepared by Ted Pillows, Ethereum’s current structure on the 12-hour chart resembles an inverse head and shoulders pattern. This formation typically signals a trend reversal and can trigger upward moves if confirmed by price action.

Pillows explained that the neckline rests near $2,700. A daily close above this level would confirm the upward breakout, opening the chance for the price to go toward $3,000. Supporting this view, CryptoTony emphasized the need for ETH to secure a close above $2,750 to confirm further upside.

Source :CryptoTony(X)

The 100-day SMA currently sits around $2,511 and has provided recent support. However, the 34 EMA above ETH remains an immediate resistance. As of writing, Ethereum trades at $2,512, consolidating above the $2,470 support zone, which remains a key threshold to defend in the short term.

Momentum Builds as Technical and On-Chain Metrics Align

On-chain metrics and technical indicators continue to align with bullish expectations. ETH open interest has risen to $14.6 billion, showing increasing trader commitment. Most of these positions are in perpetual contracts, reflecting a growing appetite for exposure.

Cas Abbe noted that ETH is attempting to reclaim the two-week Gaussian Channel. Historical movements above this channel in 2020 and 2024 led to major rallies. "If ETH reclaims this again, I’m certain of $4K ETH by Q3 2025," he stated on X.

Source :CasAbbe(X)

Ethereum’s RSI stands near 60, suggesting room for more upside. As long as the $2,470–$2,500 range holds, analysts believe a breakout above $2,700 could quickly propel ETH to $3,000.

The post Ethereum Eyes $3K as Inverse Head and Shoulders Pattern Takes Shape appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.