Despite the $4000 break from highs, ETH/USD price action is still weak. The head and shoulders pattern shows more negative aspects.

Despite dropping $4000 from the highs, the ETH/USD price action remains bearish as the head and shoulders pattern shows more weakness as the flag pattern favors short sellers.

Often, traders do not have the patience to move the market. Long-term price consolidation can lead to trading or abandoning an idea simply because the market is not mature.

This is especially true in the crypto market. Known for its high volatility, it has brought riches to many traders as quick moves lead to quick profits.

For example, ETH/USD rose from $1000 in 2021 to $5000 in 2022. They have bought their merchants for a year and their accounts have been growing exponentially.

But trading is a story of winning and losing. Not everyone wins. In fact, most retailers lose money trading. It is easy to say that you buy ETH/USD at $1000 and close it at $5000. How about buying at $5000 for fear of missing out on an even bigger move, only to see the market drop to $1000.

Certainly, many traders have bought into the dip. And, even though ETH/USD is down from its high of $4000, the bias is still weak.

Ethereum Chart by TradingView

ETH/USD is a big picture reason for bulls to worry about.

On its way to $5000, ETH/USD formed a head and shoulders pattern. Once the price broke below the neckline, it did not find any support until reaching $1000.

The rating marked the bottom of the year for the stock market and the highest point for the US dollar. Since then, stocks have risen significantly, and the cryptocurrency market has followed suit.

But in the year Despite the early 2023 rally, the bigger picture is speculative for ETH/USD. A flag flag pattern should be cause for concern for bulls, as it is usually followed by more weakness.

Bears would like to see the price drop to $1000 once again. This means that the flag pattern is over and the next target is the head and shoulders scale movement.

On the other hand, the bulls may want the price to simply stay in the flag and test the upper end. This is the only way to ruin a wrinkled flag pattern.