Ethereum (ETH) is currently forming a complex Inverse Head and Shoulder (iH&S) pattern, which suggests a potential bullish breakout with a target price of $18,000.

This iH&S pattern is recognized as a classic bullish reversal structure, indicating that Ethereum's prolonged price decline may be approaching its conclusion.

Recently, Ethereum tested the critical support range between $1,800 and $2,000, which previously served as resistance during the 'Head' phase of the iH&S pattern.

The formation of the iH&S pattern involved the left shoulder developing between 2021 and 2022, followed by a deeper decline marking the 'Head' phase from 2022 to 2023, and the right shoulder forming in 2024 with a higher low.

A crucial resistance level to monitor is the neckline of the iH&S structure, located around $3,978; breaking above this level could confirm the bullish pattern and initiate a rally towards the $18,000 target.

However, if Ethereum fails to surpass the $3,978 resistance, it may experience prolonged consolidation or a significant pullback, potentially dropping to the $1,888 support level.

A decline to $1,888 would represent a 52% decrease from the resistance level and an 8.52% drop from ETH's current market price of $2,055.

Despite recent market turmoil and significant price declines, crypto analyst Gert van Lagen remains optimistic, predicting that ETH could reach $18,000, which would be over eight times its current price.