ETH Develops Inverse Head and Shoulders Pattern – Could a $17K Surge Be Coming?

Liquidity Index and Market Transitions: Ethereum's Liquidity Index is approaching a reset, historically indicating price bottoms and potential stabilization, with traders closely monitoring liquidity and accumulation patterns for market direction.

Inverse Head and Shoulders Pattern: A potential ascending inverse Head and Shoulders pattern on Ethereum's 3-day chart suggests a bullish reversal, with a breakout above the $4,800–$5,000 neckline potentially targeting $17,000.

Exchange Outflows and Supply Dynamics: Significant declines in Ethereum exchange balances from 17 million to around 11.7–12 million ETH indicate strong accumulation and reduced sell-side pressure, reflecting long-term confidence among holders.

Market Sentiment and Future Rallies: The combination of shrinking liquid supply and price consolidation suggests Ethereum is in a macro accumulation phase, with potential for intensified rallies as demand returns.