Red alert as Ethereum price invalidates key bullish pattern

Ethereum price crashed to a key support level on Monday, increasing the risk of further downside after invalidating a crucial bullish chart pattern.

📉 Ethereum price invalidates inverse H&S pattern
The weekly chart shows that Ethereum has formed two distinct patterns in recent months. First, it developed a triple-top formation around the $4,000 level, struggling to break above that point since March last year.

A triple-top is a well-known bearish signal, often leading to further losses once the price drops below the neckline. In Ethereum’s case, the neckline was at $2,146, which was its lowest level in August last year.
Ethereum also formed an inverse head and shoulders pattern, a popular bullish indicator. This pattern consists of a neckline, two shoulders, and a head. In this case, the neckline was at $4,000, the right shoulder was at $2,830, and the head was at $2,145. However, Ethereum has invalidated the inverse head and shoulders pattern by moving below the left shoulder.

With the triple-top pattern now in play, Ethereum could face further declines, potentially dropping to the next key support at $1,520, its lowest point in October 2023. A strong bullish breakout would only be confirmed if Ethereum rallies above the triple-top resistance at $4,000.
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