Ethereum Faces $4,100 Resistance as Traders Eye Head-and-Shoulders Breakout

• Ethereum’s head-and-shoulders pattern hints at breakout potential, with $4,100 resistance being key to a sharp upward move.
• Holding above $3,000 support signals bullish interest, while dips to $2,900 could offer entry points for cautious traders.
• A $4,100 breakout could target $7,000, with traders watching momentum and volume amid consolidation within tight ranges.

Ethereum’s price action shows a head-and-shoulders pattern. As of January 28, 2025, Ethereum (ETH) is trading at $3,194.59, up 0.43% on the day. The daily range extends from $3,150.26 to $3,221.98. However, the current structure indicates consolidation within key support and resistance zones.

According to technical analyst Ali, the formation of head-and-shoulders has attracted attention across the market. The pattern shows Ethereum’s left shoulder forming between April and June, while the right shoulder is developing from November to January. A critical neckline resistance at $4,100 has been tested multiple times but remains unbroken.

Key Support at $3,000 and the Role of Momentum

The short-term trend of Ethereum may depend on its capacity to maintain above $3,000. The psychological support zone near $3,000 is accompanied by a shaded area indicating strong buying interest. Furthermore, higher lows around the right shoulder suggest the potential for a bullish reversal.

A downward trendline from previous months highlights bearish pressure, while horizontal resistance near $4,100 reinforces this level. If Ethereum can break above this resistance, a measured move could project prices toward the $7,000 region. Ali emphasizes that traders should maintain a cautious approach. Dips to $2,900 may offer buying opportunities, but stop-losses between $2,700 and $2,500 are essential to limit risks.

Path to Breakout or Further Consolidation

The market structure remains tightly confined, with Ethereum fluctuating between established levels. Historical price movements indicate periods of decline followed by strong recoveries. If bullish momentum builds, the neckline breakout at $4,100 could signal a sharp upward expansion.

However, the price remains below the resistance, requiring increased volume and momentum to confirm a breakout. Ethereum’s price history also shows multiple failures to breach $4,100, underscoring the challenge of this level.