Technical analysis by ebadshafi89 about Symbol ETH: Sell recommendation (7/28/2025)

📊 Pattern Overview: Head and Shoulders Left Shoulder: Formed around July 24th, marked by a high near $3,800 followed by a retracement. Head: A higher peak on July 27th, topping out near $3,888, then pulling back again. Right Shoulder: Currently anticipated, projected to form around the same height as the left shoulder, with a potential completion near $3,800 before another decline. Neckline: Flat support line around $3,544, acting as the crucial level that, if broken, confirms the pattern. 🧠 Interpretation The Head and Shoulders is generally interpreted as a trend reversal pattern. In this context, Ethereum has been in a strong uptrend, but the pattern signals a potential topping out and shift toward a bearish phase. If ETH breaks below the neckline at $3,544 with volume confirmation, it would signal that bulls are losing control, and sellers may take over. 📉 Bearish Breakdown Target The theoretical downside target can be calculated by measuring the distance from the Head to the Neckline and projecting it downward from the neckline: Head peak: ~$3,888 Neckline: ~$3,544 Height: ~$344 📌 Target after breakdown: $3,544 - $344 = $3,200 (approx.), with interim support levels around: $3,332 (horizontal support) $3,112 $2,917 These levels might act as pause points or bounce zones if the breakdown unfolds. 🟢 Invalidation Scenario If Ethereum invalidates the pattern by: Breaking above the Head level ($3,888) and holding Sustaining higher highs with strong volume Then the bearish thesis would be invalidated, and bulls may aim for continuation toward $4,000+ levels. 🧩 Strategic Takeaways Aggressive traders might short the neckline break at $3,544, with stops just above the right shoulder (~$3,800). Conservative traders may wait for a retest of the neckline post-breakdown. Risk management is key, especially in crypto markets, which are known for head fakes and false breakouts. ⏳ Final Thought This setup doesn't guarantee a drop—it merely increases the probability of a reversal. Watch for volume on the neckline break and monitor how price reacts at key support levels. DYOR before taking a trade