Ethereum forms a complex iH&S structure, why $18,000 is a possible target

Ethereum (ETH) is showing signs of a bullish breakout, forming a complex inverted head and shoulders (iH&S) pattern on the weekly timeframe. This key technical pattern suggests that Ethereum price is poised for a significant upside move to reach a bullish target of $18,000.

Ethereum Forms Inverted Head and Shoulders Pattern

The Ethereum price has been in a long period of consolidation, having experienced a sharp drop amid ongoing market turmoil. Despite the sharp drop in Ethereum price, which has left its value well below its all-time high, Gert van Lagen, a cryptocurrency analyst on X (formerly Twitter), predicts that Ethereum could still reach its $18,000 price target.

Notably, Ethereum recently rebounded from the $1,800 to $2,000 support level, which previously acted as resistance during the “head” phase of the iH&S pattern. With this key retest confirmed, ETH could enter the final stage of a reversal to reach a new all-time high.

Lagen’s $18,000 bullish target is more than eight times Ethereum’s current price, highlighting the sheer size of this prediction. Lagen has identified the formation of an iH&S structure on the Ethereum chart and backs up his ambitious prediction with this famous bullish chart pattern.

The inverted head and shoulders pattern is a classic bullish reversal structure that often signals the end of a downtrend and the start of a strong new uptrend. Considering the depressed price of Ethereum, the formation of the iH&S chart pattern suggests that this long-term decline may finally be coming to an end.

In the analyst’s chart, the left shoulder of the iH&S structure began to form between 2021 and 2022, experiencing a price peak before a correction. From 2022 to 2023, a deeper decline occurred, marking a cycle low and the formation of a “head.” Finally, the right shoulder of the technical pattern formed between 2024 and 2024, recording a higher low in line with the left shoulder.

Lagen’s price chart highlights that the most critical level to watch is the neckline of the iH&S structure, which, at around $3,978, acts as a major resistance area.

How to Achieve the $18,000 ETH Target

Continuing with Lagen’s Ethereum price chart, the analyst said that if ETH is able to break through the $3,978 resistance level with strong trading volume, it could validate the inverted head and shoulders pattern and open the door to a rise to $18,000. Conversely, if Ethereum fails to break through this resistance level, a long period of consolidation or a sharp correction could occur before the next breakout attempt.

Lagen predicts that if the resistance area is breached, the Ethereum price could fall to $1,888 — a significant support level that could prevent further declines. A fall to this support level would mean that the Ethereum price could fall 52% from the major resistance level and 8.52% from ETH’s current market value of $2,055.