Ethereum Forms a Classic Head & Shoulders — Trend Reversal Risk Ethereum / US DollarCOINBASE:ETHUSDRexTraderGOLDOn the H1 timeframe, Ethereum is showing a textbook Head & Shoulders formation, signaling that bullish momentum is weakening and a potential trend reversal is developing. Structurally, the market first printed a strong impulsive rally, followed by the formation of a Left Shoulder, then an extended push to a higher peak forming the Head, and most recently a lower high that aligns cleanly with the Right Shoulder. This sequence reflects a clear loss of upside momentum, where buyers are no longer able to push price beyond prior highs. From a technical perspective, the neckline zone around 3,276 is the most critical level to monitor. Price is currently trading above this area but is already showing hesitation, while the rebound from the last swing low lacks strong follow-through. Notably, the structure is forming below the recent highs, which confirms distribution rather than continuation. The moving averages still slope upward, but they are beginning to flatten, often a leading signal that trend strength is fading before a larger correction unfolds. If Ethereum breaks and closes decisively below the neckline, the Head & Shoulders pattern would be confirmed, opening the door for a downside expansion toward the 3,117 support zone, which aligns with the projected measured move of the pattern and prior demand. Any pullback toward the neckline after the break would likely act as resistance, offering continuation opportunities to the downside. Conversely, the bearish scenario would be invalidated only if price reclaims the right-shoulder high and sustains acceptance above it. Until that happens, Ethereum remains in a distribution phase, with downside risk clearly outweighing upside continuation in the short term.