Ethereum's macro chart reveals an inverse head and shoulders pattern, suggesting a bullish reversal with a target of $7,000. The pattern's neckline resistance is identified between $4,000 and $4,500, and a breakout above this range could trigger significant upward momentum. Currently trading around $3,100, Ethereum's potential breakout aligns with strong fundamentals, including layer-2 scaling solutions and deflationary supply dynamics. The inverse head and shoulders pattern, a classic bullish indicator, is characterized by three troughs: the left shoulder, the deeper head, and the right shoulder. Ethereum's left shoulder formed during market dips in 2022-2023, the head bottomed amid 2024's bearish pressures, and the right shoulder is shaping up in early 2026. A decisive break above the neckline, accompanied by increasing volume, would confirm the pattern and target $7,000. Ethereum's technical outlook is supported by its fundamental strengths, such as enhanced scalability through layer-2 solutions and robust institutional interest. However, traders should remain cautious of macroeconomic factors and regulatory scrutiny that could impact the pattern's validity. On-chain metrics show growing network activity, with daily transactions surpassing 1.2 million and DeFi TVL nearing $100 billion.