Ethereum is forming a well-defined inverse head-and-shoulders reversal pattern with a critical neckline around $3,400, signaling a potential breakout toward $4,400. On-chain data reveals a sharp 95% drop in selling pressure from long-term holders, indicating supply is drying up. Key resistance zones exist near $3,150 and $3,480, with downside risks if prices fall below $2,800 and especially $2,620.