Ethereum (ETH) is exhibiting a chart sample that has appeared in earlier market cycles. Merchants are evaluating it to the construction seen throughout the 2021–2022 interval. That cycle led to a pointy decline. The present setup, nevertheless, suggests a special chance.
ETH Worth Motion in 2021–2022
In 2021 and early 2022, Ethereum shaped a head-and-shoulders sample. This included a left shoulder in mid-2021, a peak that shaped the top later that yr, and a proper shoulder in early 2022. The neckline help failed in mid-2022. After that, ETH dropped by over 65% in underneath two months.
2021-2022 Cycle
➺ $ETH shaped head and shoulder sample
➺ Misplaced the uptrend and dumped 65% in 2 months2025-2026 Cycle
➺ ETH has shaped inverse head and shoulder sample
The breakout and pump might be insane. pic.twitter.com/ySSGFgORZj
— Max Crypto (@MaxCrypto) January 20, 2026
This drop ended the earlier uptrend. The sample matched the textbook instance of a reversal construction. Merchants nonetheless use that formation as a reference level for present circumstances.
In the meantime, a brand new sample is now forming on the ETH chart. This time, it’s an inverse head-and-shoulders sample. The left shoulder appeared round mid-2024. A decrease low in late 2024 shaped the top. The fitting shoulder is growing in early 2025.
The neckline lies between $4,000 and $4,400, which remains to be distant from the asset’s present price ticket.
Present Worth and Market Exercise
ETH now trades at $3,100 at press time. It dropped greater than 3% within the final 24 hours and 1% over the previous 7 days. On Sunday, the asset moved above $3,300 however later fell. Because the weekend, ETH has misplaced round 5%. This transfer adopted broader market stress, linked partially to renewed world commerce considerations.
CW, a market analyst, commented, “First, the CME hole close to 3k might be crammed, after which the subsequent goal might be 3.2k.” This means a doable dip earlier than any restoration.
As beforehand reported, extra ETH is being locked up for staking than ever earlier than. Ethereum staking lately hit an all-time excessive, with new inflows nonetheless being added. On the similar time, main gamers are nonetheless watching the market. In line with analyst Maartunn, Bitmine put $14.6 billion into ETH in 2025, however has made no massive strikes to this point in 2026.
Bitmine poured $14.6B into ETH final yr, but it surely’s been quiet for the reason that new yr started.
No main strikes (apart from stacking) to this point in 2026. pic.twitter.com/fD1ER15AoW
— Maartunn (@JA_Maartun) January 20, 2026
As well as, a CryptoQuant analyst, _OnChain, mentioned,
“I see not solely worth motion segmented into elements, but additionally time itself.”
The identical report tracks how institutional holdings and ETF curiosity have adopted key moments on ETH’s chart. Information consists of fund-related metrics and up to date responses to regulatory developments just like the Readability Act.
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