This Ethereum (ETH) Pattern Could Launch the Next Big Rally

Ethereum (ETH) is showing a chart pattern that has appeared in earlier market cycles. Traders are comparing it to the structure seen during the 2021–2022 period. That cycle ended in a sharp decline. The current setup, however, suggests a different possibility.

ETH Price Movement in 2021–2022

In 2021 and early 2022, Ethereum formed a head-and-shoulders pattern. This included a left shoulder in mid-2021, a peak that formed the head later that year, and a right shoulder in early 2022. The neckline support failed in mid-2022. After that, ETH dropped by over 65% in under two months.

This drop ended the previous uptrend. The pattern matched the textbook example of a reversal structure. Traders still use that formation as a reference point for current conditions.

Meanwhile, a new pattern is now forming on the ETH chart. This time, it’s an inverse head-and-shoulders pattern. The left shoulder appeared around mid-2024. A lower low in late 2024 formed the head. The right shoulder is developing in early 2025.

The neckline lies between $4,000 and $4,400, which is still far away from the asset’s current price tag.

Current Price and Market Activity

ETH now trades at $3,100 at press time. It dropped more than 3% in the last 24 hours and 1% over the past 7 days. On Sunday, the asset moved above $3,300 but later fell. Since the weekend, ETH has lost around 5%. This move followed broader market stress, linked in part to renewed global trade concerns.

CW, a market analyst, commented, “First, the CME gap near 3k will be filled, and then the next target will be 3.2k.” This suggests a possible dip before any recovery.

As previously reported, more ETH is being locked up for staking than ever before. Ethereum staking recently hit an all-time high, with new inflows still being added. At the same time, major players are still watching the market. According to analyst Maartunn, Bitmine put $14.6 billion into ETH in 2025, but has made no big moves so far in 2026.

In addition, a CryptoQuant analyst, _OnChain, said,

The same report tracks how institutional holdings and ETF interest have followed key moments on ETH’s chart. Data includes fund-related metrics and recent responses to regulatory developments like the Clarity Act.

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