Ethereum faces collapse risk as giant H&S pattern forms

ProposalManiac · 2026-01-30T19:13:52+00:00

Ethereum is at a critical point with ETH around $2.74K, showing signs of an impending collapse due to a Head and Shoulders pattern forming below the MA200 trendline. A break below key support could trigger significant selling pressure, with a potential drop to $1385, suggesting risk management is crucial as a bear market phase looms.

ProposalManiac

2026-01-30 19:13:52

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Ethereum is currently at a critical point as the ETH price hovers around $2.74K. However, technical analysis indicates trouble ahead—a significant Head and Shoulders (H&S) pattern is forming, with the Right Shoulder below the 1-day MA200 line (orange trendline). This situation is considered a strong warning signal of a potential collapse in the next phase.

Right Shoulder H&S below MA200 - Imminent Collapse Warning

The Right Shoulder of this H&S pattern is testing below the higher trendline (Higher Lows), which is a crucial support level for the entire pattern. If the price breaks this support, regardless of circumstances, the next selling pressure will be triggered. H&S patterns often suggest a strong collapse upon confirmation, prompting investors to closely monitor the coming days.

Fibonacci 2.0 target at around 1385 - The Final Point?

According to Fibonacci analysis, the 2.0 extension target from the low of the Right Shoulder points toward the $1385 region—this is the support level from the daily low in April 2025. Interestingly, this target coincides exactly with historical support, indicating a potential stopping point if a collapse occurs.

Next Scenario - Preparing for Phase 2 of the Bear Cycle

If the pattern continues along this scenario, the natural target by the end of the year could be a price drop to at least $1400. This would be a significant decline, requiring investors to manage risks carefully. The signals from the forming H&S pattern suggest that entering Phase 2 of the Bear Cycle is not far off.

Closely monitor this pattern to prepare for the next price movements.

ETH-1,13%

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