Ethereum has shown signs of strength, but the bullish picture appears only in inverted-chart terms. On the standard chart, the broader downtrend remains intact until key resistance is reclaimed, tempering optimism. The inverted structure reinforces Ethereum’s bearish higher-timeframe outlook. Presenting the inverted chart, a market analyst noted that he has been short on Ethereum for several days, outlining potential outcomes on the higher time frame.
He added that he does not necessarily plan to hold the full position to targets, preferring lower-timeframe opportunities given the current macro environment. According to the analyst, Ethereum’s HTF structure remains clear: a distribution phase followed by consistent breakdowns since the $5,000 peak. A parabolic curve formed off that top has guided price action for months, and until that parabola is decisively broken and price holds above it, the broader downtrend remains intact. The current price action shows a strong impulse move into a zone marked by a purple line, representing a significant support/resistance flip on the inverted chart: previously resistance, it is now support.
The analyst is watching the small blue box on the right side of the chart, which indicates the current consolidation following the impulse. From the consolidation zone, there are two primary scenarios: either continuation after a shallow pullback, or a brief fake breakdown followed by a swift reclaim before the next leg higher on the inverted chart, which would translate to further downside for ETH. The analyst describes the purple path as his ideal bullish scenario on the inverted structure, as price continues to respect the long-standing parabolic curve. As long as the parabola remains intact, the broader bearish trajectory remains the base case.
Regarding targets, he divided expectations into short- and long-term objectives. The immediate target sits around $1,700 as the first logical area to take profits and monitor for a reaction strong enough to challenge or even break the parabolic resistance. The final target lies near $1,400, representing the larger extension if momentum fully plays out. However, he emphasized that the setup would be invalidated if ETH loses the key flip zone and begins accepting below it on the inverted chart, a move that would break the parabola and potentially signal a broader trend reversal.
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