Ethereum Forms a Classic Head & ShouldersEthereum / US DollarCOINBASE:ETHUSDXauMasterNetworkHello traders! Here’s a clear technical breakdown of ETHUSD (1H) based on the current chart structure. Ethereum recently printed a strong impulsive bullish rally, breaking above multiple resistance levels with clear momentum. However, after reaching the highs, price action has transitioned into distribution behavior, forming a well-defined Head & Shoulders pattern at premium levels. The structure is clear: a left shoulder, a higher head, and a lower right shoulder, signaling weakening bullish control. The market has shifted from impulsive expansion into overlapping, corrective price action, a classic sign that buyers are losing dominance while sellers begin to take control. 🟦 SUPPLY & DEMAND – KEY ZONES Major Supply / Distribution Zone: The 3,390–3,410 region acts as strong supply, where the head of the pattern was formed and aggressive selling pressure emerged. This zone caps upside attempts and defines the premium area. Neckline / Key Support: The 3,280–3,300 zone represents the neckline of the Head & Shoulders pattern. This is the most critical level on the chart, acting as short-term demand and structural support. Lower Demand Targets: If the neckline fails, downside liquidity sits at: - 3,230 – first demand and structure projection - 3,080–3,100 – major demand zone and measured-move target These zones define the potential bearish expansion path. 🎯 CURRENT MARKET POSITION Currently, ETH is trading just above the neckline, placing price at a high-impact decision zone. The recent bounce lacks impulsive strength, suggesting it is corrective rather than trend continuation. As long as price remains below the supply zone, upside is limited and vulnerable to rejection. 🧠 MY SCENARIO My scenario: As long as Ethereum fails to reclaim and hold above the 3,390–3,410 supply zone, the Head & Shoulders structure remains valid. A clean breakdown and acceptance below the 3,280–3,300 neckline would confirm the pattern and open the door for a move toward 3,230, followed by a deeper pullback into the 3,080–3,100 demand zone. If buyers manage to defend the neckline and push price back above resistance with strong momentum, the bearish pattern would be invalidated. Until that happens, rallies should be treated as corrective moves within a distribution phase. For now, Ethereum is at risk of structural breakdown, not in clean continuation. ⚠️ RISK NOTE Pattern-based setups require confirmation. Wait for acceptance below the neckline or invalidation above supply, avoid early bias, and always manage your risk.