ETHEREUM is forming a bullish head and shoulders

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Chart Patterns and Trendlines

1. Head and Shoulders Pattern (Bearish)
- Left Shoulder: Formed around 3,450 USDT.
- Head: Reached a peak around 3,550 USDT.
- Right Shoulder: Formed around 3,450 USDT again.
- The neckline, which was breached, is around 3,300 USDT, indicating a bearish reversal.

2. Inverse Head and Shoulders Pattern (Bullish)
- Left Shoulder: Formed around 3,200 USDT.
- Head: Reached a low around 3,000 USDT.
- Right Shoulder: Forming around the current price level of 3,498.35 USDT.
- The neckline for this pattern is around the 3,500 USDT level. If the price breaks above this neckline, it suggests a bullish reversal.

3. Descending Channel
- Ethereum was trading within a descending channel, marked by parallel downward-sloping trendlines.
- The breakout from this channel around mid-July indicates a reversal of the previous downtrend.

Key Support and Resistance Levels

1. Support Levels
- 3,248.81 USDT: A key support level marked on the chart, aligning with the breakout point from the descending channel and the potential right shoulder of the inverse head and shoulders pattern.
- If the price falls below this level, the next support can be around the previous lows at 3,000 USDT.

2. Resistance Levels
- 3,976.07 USDT: The next significant resistance level, which is also a target for the potential inverse head and shoulders pattern.

Price Projections

1. Bullish Scenario
- If Ethereum holds above the 3,248.81 USDT support level and breaks above the neckline of the inverse head and shoulders pattern (around 3,500 USDT), the projected target is around 3,976.07 USDT.
- This target aligns with a previous high and a psychological resistance level.

2. Bearish Scenario
- If Ethereum fails to hold the 3,248.81 USDT support, it might retest the lower support of around 3,000 USDT.
- A fall below 3,000 USDT could indicate further downside, potentially revisiting the lows around 2,750 USDT.

Trading Strategy

1. Long Position
- Consider entering around the 3,248.81 USDT support level, with a target of 3,976.07 USDT, especially if the price breaks the neckline around 3,500 USDT.
- Set a stop-loss below 3,200 USDT to manage risk.

2. Short Position
- If the price fails to hold the 3,248.81 USDT level, consider shorting with a target towards 3,000 USDT and below.
- A stop-loss above 3,300 USDT can be set to manage risk.

Summary
- Ethereum's price action shows the potential formation of a bullish inverse head and shoulders pattern.
- Key support and resistance levels at 3,248.81 USDT and 3,976.07 USDT respectively should be closely watched.
- Trading strategies should be adaptive to the price movements around these critical levels, with proper risk management in place.

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