Ethereum Is Completing a Classic Head & ShouldersEthereum / US DollarCOINBASE:ETHUSDXauMasterNetwork1. Current Market Structure Ethereum has transitioned from a strong bullish impulse into a clear distribution structure on the H1 timeframe. After the vertical rally from the 3,100 area, price formed a well defined Head & Shoulders pattern, signaling exhaustion rather than continuation. The left shoulder and right shoulder are symmetrical, while the head marks the final aggressive push that failed to attract sustained demand. Since then, price has shifted into lower highs and overlapping candles, confirming loss of bullish control. This is no longer an impulsive uptrend it is a corrective-to-distributive phase. 2. Key Zones & Market Positioning Major Supply / Head Zone: 3,390 – 3,420 → Strong rejection, distribution confirmed Neckline / Key Support: ~3,280 – 3,265 → Structural decision level Intermediate Demand: ~3,220 Final Downside Liquidity Target: 3,080 – 3,100 Price is currently hovering just above the neckline, which is typical behavior before a decisive breakdown in classical H&S structures. 3. EMA & Momentum Context The EMA 98 is still rising and located below price, which explains the temporary pauses and bounces. However, price is now trading below prior momentum highs, and EMA support is flattening. This often occurs before deeper pullbacks as late buyers get trapped above the neckline. Momentum is clearly weakening bullish candles are corrective, not impulsive. 4. Liquidity & Pattern Psychology The Head & Shoulders structure reflects a distribution of long positions: - Early buyers took profit near the head - Late buyers entered near the right shoulder - Liquidity now rests below the neckline Once the neckline breaks and acceptance occurs, price typically accelerates quickly as stop-loss liquidity is released. 5. Market Scenarios 🔽 Primary Scenario – Bearish Continuation (High Probability) Clean break and close below 3,265 Retest of neckline fails Expansion toward 3,220 → 3,080 This move would be a healthy correction within the broader uptrend, not a macro reversal. 🔼 Invalidation Scenario Strong reclaim and acceptance above 3,360 Break of right-shoulder structure This would neutralize the H&S pattern and reopen bullish continuation — currently unlikely without volume. 6. Trading Perspective Bias: Bearish (short-term) Avoid longs near the neckline Shorts favored on rejection or confirmed breakdown Best long opportunities appear after liquidity is swept lower Summary Ethereum is no longer in expansion it is distributing. The Head & Shoulders pattern is mature, momentum is fading, and liquidity is clearly building below the neckline. As long as price remains capped below the right shoulder, the roadmap remains straightforward: Distribution → Neckline Break → Liquidity Expansion Downward