The crypto market closed the trading deep in the red as the prices of both Bitcoin and Ethereum took a massive hit today! The ETH price had a more than 25% dump, pushing the Altcoins back to price levels we have not been in for the past few weeks now.
In this Ethereum analysis, we will be talking about what we believed caused the flash crash, the key levels we are currently watching as well as our bullish prediction for ETH in the coming days.
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What Caused The Flash Crash
Today was El Salvador day as the country officially legalized the use of Bitcoin as a valid currency and tender for exchange within its borders.
This move by the South American country generated a lot of positive sentiments in the crypto market but during its launch, we saw the El Salvador Bitcoin wallet face technical issues, going offline for a while. This fueled panic as we saw retail traders begin selling off their crypto positions, leading to a massive dump.
What Next? Key Levels To Watch
The Ethereum price is currently trading within the ascending channel pattern it recently broke out from in the 15 minutes timeframe.
With the key levels of this ascending channel back in play, we will need to see the Ethereum price rally back above the resistance channel for the bullish rally in the Altcoin to continue.
Until this bullish rally occurs, we can expect to see the Ethereum price continue to trade sideways within this ascending channel pattern in the 15 minutes timeframe.
Final Verdict!
Ethereum is currently trading within an ascending channel pattern in the 15 minutes timeframe. This pattern offers us key levels to watch for in the coming days.
A price rally and break above this ascending pattern is the bullish confirmation we need to indicate the end of the ranging market and the resumption of the Ethereum bullish rally in the coming days.
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