Ethereum Daily Chart Distribution Phase Signals huge dump

If you’ve been tracking Ethereum on the daily chart, the structure is starting to look heavy — and not in a bullish way. Let’s break this down step by step so it’s easy to follow 👇

Support lost: ETH has already broken its key support zone around $4060, which previously acted as a higher low. Now, the recent dip is printing a new lower low, shifting market sentiment.

Daily close levels matter: If the daily candle closes below $4000, it confirms weakness and opens doors for a further sell-off.

Possible head and shoulders: A pullback toward the $4100 region could simply build the right shoulder of a bearish head and shoulder pattern. The structure matches what we saw earlier on the left shoulder.

Bearish momentum risk: If ETH fails to hold above $4000 after that pullback, we could be looking at extended downside — even a sharp fall toward the $2000 zone based on historical dump patterns.

Market behavior reminder: Over the past two years, whenever ETH started a distribution breakdown, the drop was often fast and violent. That’s why caution is key here.

📌 Key Takeaway: Ethereum is at a make-or-break daily level. Watch $4000 closely — losing this level could accelerate a bearish breakdown. Short-term traders may look for opportunities on the pullback, while long-term holders need to stay cautious of the possible head and shoulders pattern forming.