The ETH sell-off is playing out exactly as we predicted Ethereum Sell-off Not Over! Watch This Bearish Analysis, and right now we are seeing a key pattern form on the 1-hour timeframe. This pattern will help us better follow the ETH price as it moves lower and spot exactly when the bearish target has been met and the sell-off is over.
The key pattern we are talking about is the Expanding Channel Pattern currently forming on the 1-hour timeframe.
This pattern is well known among professional traders. In this Ethereum analysis, we will be breaking it down and helping you understand what it means for the Ethereum price and how it could be useful to us as traders.
To trade ETH with leverage, sign-up to Bybit right now! Bybit’s BIGGEST Deposit Bonus Campaign is now live! First-time depositors can get up to a $4,100 Bonus when you sign-up and fund your Bybit account with our Bybit link.
Claim up to $30,030 in Bonus
Ethereum Expanding Channel Pattern
The image above is a typical example of an Expanding Channel Pattern. And right now, it plays two roles for us on the Ethereum price chart.
- It helps forecast how the last leg down for Ethereum would play out.
- It gives us key levels that must be broken for the ETH bullish reversal to begin
Continue reading as we break down these two key roles.
1) Ethereum Last Leg Down
The image above is the current development in the Ethereum price. But we are expecting one more leg down before this bearish move on Ethereum is completed.
This last leg down is in line with what we expect from this Expanding Channel Pattern, and also in line with the larger picture for Ethereum and the larger converging triangle pattern Ethereum is trading in.
2) Key Levels To Watch For A Bullish Reversal
The 2nd role the Expanding channel pattern plays is it helps us spot exactly when the Ethereum sell-off is over. And for us to do that we will be taking a look at the image of the typical example of an Expanding Channel Pattern above.
It is clear that once the last leg down for the Expanding Channel is completed, we expect to see a bullish bounce and price rally from this region to the upside.
Once the rally breaks through the resistance channel of the pattern, we can safely say the ETH sell-off is over and we can expect to see more push higher in the coming days.
This is exactly what the example displays and what we expect to play out in the coming days.
Easy Steps From Beginner To Pro Crypto Trader
You can speed up your learning journey by reading our How To Trade Bitcoin Guide. This guide is the best for crypto traders who wants to get familiar with the basics of Bitcoin trading. You can also check out our top list of Best Bitcoin Exchanges To Trade With.
PrimeXBT Covesting: Trade Hassel Free
Sign-up on PrimeXBT today to trade Bitcoin hassle-free. You can copy experienced traders and access hundreds of different strategies on the platform! Don’t forget to claim your 25% bonus by using the promo code “bitcoinsensus50” when you sign-up with our link PrimeXBT Covesting