• Ethereum breaks the neckline of the inverse head-and-shoulders pattern, targets $3,427 with an 8.3% projected move.
• The daily chart shows clear support at $2,965.72 and resistance at $3,169.73 as ETH gains 6%.
• Price forms a bull flag pattern, consolidating just below the major breakout zone near $3,500.

Ethereum has continued its upward trend with a 6.0% increase in the past 24 hours, taking its price to $3,152.53. The move follows a clear breakout above a major neckline level on the daily chart, which confirms the completion of an inverse head-and-shoulders formation. 

This technical structure has been forming since January 2025 and reflects a long-term trend reversal pattern. The breakout projects a measured move of approximately 8.3%, placing the next target at $3,427.46.

ETH’s current range remains between strong support at $2,965.72 and resistance at $3,169.73. The price recently crossed above the neckline at $2,886.27, validating bullish continuation from earlier consolidation zones. Volume during the breakout session also rose, adding confidence to the structural breakout. Based on the current candle setup, Ethereum maintains its position just below the highlighted resistance zone. This zone coincides with the projection of the inverse head-and-shoulders pattern.

Breakout Pattern Defines Technical Setup and Projected Move

Ethereum’s chart clearly illustrates three rounded bottoms, forming the left shoulder, head, and right shoulder between January and early July 2025. After several months of accumulation, the price action surged in early July and broke the neckline cleanly. From the breakout point of $2,886.27, the projected upward move is measured at approximately 261.95 points, or 8.3%.

$ETH will reclaim $3500 soon.

DYOR pic.twitter.com/m8yBvLzgz6

— CryptoBusy (@CryptoBusy) July 16, 2025

This places the price objective at $3,427.46, now marked as the next resistance level on the chart. The breakout move occurred swiftly, supported by momentum and sustained buying interest. Notably, the price continues to consolidate above the $3,000 threshold, holding above the previous resistance now acting as support. The current structure shows room for further upside if the resistance near $3,170 is breached in the sessions ahead.

Ethereum Forms Bull Flag As Resistance Approaches

In addition to the reversal pattern, Ethereum appears to be forming a bull flag on the daily chart. After the rapid rally that started earlier this month, the price has entered a narrow consolidation just under the resistance zone. The current flag structure suggests continuation potential, although it remains within the defined resistance range of $3,169.73.

The latest price action shows that ETH is attempting to stabilize above its $2,965.72 support. Meanwhile, traders are observing the $3,427.46 target as the likely extension point if the breakout holds. The projected range of movement remains 8.3%, equivalent to 261.95 points from the neckline. Ethereum’s trading volume and structure continue to support the breakout narrative without any signs of immediate weakness in the short term.