Ethereum Price Chart Warns of a 20% Crash— Can BTC-to-ETH Rotation Stop It?

Ethereum's daily chart has broken below the $2,880 neckline of a head-and-shoulders pattern, activating a bearish structure that projects a potential 20% drop toward $2,300 if support fails. Despite this breakdown, the price rebounded due to capital rotation from Bitcoin into Ethereum, highlighted by large on-chain swaps. Analysis of holder behavior shows that while whales are using the bounce to trim risk, long-term holders (6-12 month cohort) are accumulating, which has helped stabilize the price. Furthermore, derivatives data indicates significant short crowding, with short liquidation exposure ($1.69 billion) far outweighing long exposure ($700 million). If Ethereum pushes above $3,020, a short squeeze could occur, potentially invalidating the bearish structure. However, a failure to hold the $2,780 support level would reaffirm the bearish projection.

(Source：BeInCrypto)