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The Ethereum price has been aggressively selling off all week. Down more than -18% from its recent highs, a lot of traders are currently waiting to see that selling pressure ease off. And that wait might be coming to an end soon!
Right now, we are seeing the Ethereum price form an Inverse Head and Shoulders Pattern on the 1-hour timeframe. If this pattern completes, there is a very high probability that we might the ETH price move higher in the coming days.
In this Ethereum analysis, we will be breaking down this Inverse Head and Shoulders Pattern as well as the key levels we are currently watching on the ETH 1-hour timeframe.
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Ethereum Inverse Head and Shoulders Pattern
The Inverse Head and Shoulders Pattern is a great reversal pattern that comes into play when the price of an asset is ready to change trend.
For the Ethereum price chart, that trend change could see the ETH price rallying back up for the short term. This pattern is used by professional traders and also comes with a standard target as well as the best entries for a potential trade.
And that best entry is the break and price close above the Neckline Region.
Waiting For The Break Of The Neckline Region!
The Neckline Region is a key resistance the Ethereum price must break to confirm the start of the bullish rally.
Until this Neckline Region is broken, this Inverse Head and Shoulders Pattern will remain uncompleted and not ready to be traded. This saves us from buying in too early and then watching the pattern fail.
So we stand aside and wait for this Neckline Region to be broken on the 1-hour timeframe to confirm our bullish bias and entry on Ethereum.
Ethereum Bullish Target!
Our bullish target for this potential move higher is the $3,433 price level. This is the standard target for this inverse head and shoulders pattern and is a potential surge of more than 8% in the value of Ethereum.
However, this move can only become valid once the Ethereum price breaks and stays above the Neckline region in the 1-hour timeframe. Until that happens, we stand aside and wait for that bullish confirmation.
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