Ether struggles below $3.4K as $6B options expiry looms

Ethereum has traded largely flat over the past week as markets await a $6 billion options expiry.

Price action has remained subdued despite repeated speculation about an imminent breakout.

Beneath the surface, technical indicators suggest a potentially significant setup is forming.

On the daily chart, Ethereum is shaping a clear inverse head-and-shoulders pattern.

The structure’s neckline sits close to the $3,400 resistance zone.

Analysts say flat necklines often attract stronger momentum once price breaks through.

A decisive close above $3,400 would confirm the bullish reversal pattern.

The measured technical target from the formation points towards the $4,400 level.

While price has stalled, on-chain data shows a sharp drop in long-term holder selling.

Hodler Net Position Change indicates selling fell from around 1.1 million ETH in late November.

By Dec. 23, long-term selling had declined to just over 54,000 ETH.

This marks a collapse of more than 95% in distribution pressure.

Analysts say reduced long-term selling often signals supply exhaustion.

Shrinking supply can strengthen the foundation for upside moves if demand returns.

Ethereum still faces a major supply barrier before reaching the neckline.

Cost basis data highlights heavy resistance between $3,150 and $3,173.

Around 2.94 million ETH were last accumulated in this range.

Clearing this zone is viewed as the final hurdle before testing $3,400.

A sustained move above $3,150 would represent a gain of roughly 7%.

Once past $3,400, resistance appears thinner until the $4,170 area.

Options expiry may increase short-term volatility around these key levels.

Downside risk remains if Ethereum fails to hold above critical supports.

A drop below $2,800 would weaken the bullish structure.

A fall under $2,620 would invalidate the pattern entirely.

At the time of reporting, Ethereum price was $2,947.46.