Ethereum's Bullish Breakout Targets $18,000

Ethereum (ETH) has recently exhibited signs of a bullish breakout, forming a complex Inverse Head and Shoulder (iH&S) pattern on the weekly timeframe. This technical formation suggests that the Ethereum price is poised for a significant rally, with a potential target of $18,000.

Ethereum has been in a prolonged consolidation phase, experiencing substantial declines due to market turbulence. Despite these setbacks, crypto analyst Gert van Lagen predicts that ETH could still reach a price target of $18,000. This prediction is based on the formation of an iH&S pattern, which is a well-known bullish chart pattern.

Ethereum recently rebounded from the $1,800 – $2,000 support range, which previously acted as resistance during the ‘Head’ phase of the iH&S pattern. This retest confirms that ETH may be entering the final stage of its reversal, potentially leading to new all-time highs.

Lagen’s bullish target of $18,000 is more than 8 times Ethereum’s current price, highlighting the magnitude of this projection. The iH&S structure on the Ethereum chart supports this ambitious prediction. The Inverse Head and Shoulder pattern is a classic bullish reversal structure, often signaling the end of a downtrend and the beginning of a strong uptrend. Given Ethereum’s recent downturn, the formation of this pattern suggests that the prolonged decline may be nearing its end.

According to Lagen’s analysis, the left shoulder of the iH&S structure began forming from 2021 to 2022, experiencing a price peak before a pullback. From 2022 to 2023, a deeper decline occurred, marking the cycle low and the formation of the ‘Head.’ The right shoulder of the technical pattern was formed between 2024 to 2024, recording a higher low that aligned with the left shoulder.

Lagen’s price chart indicates that the most critical level to watch is the neckline of the iH&S structure, which is approximately $3,978 and acts as the primary resistance area. If ETH can surpass this resistance level with strong volume, it could validate the Inverse Head and Shoulder pattern and open the door for a rally toward $18,000. Conversely, if Ethereum fails to break above this resistance level, a prolonged consolidation or significant pullback may occur before its next breakout attempt.

Lagen predicts that a rejection at the resistance area could see the Ethereum price drop to $1,888 — an important support level which could prevent further declines. A drop to this support would represent a potential 52% dip from the main resistance level and an 8.52% decline from ETH’s current market value.