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In our previous Ethereum analysis Warning: Ethereum Forming A Descending Triangle Pattern. This Could Be Bad! we talked about the major pattern the ETH price was currently trading in.
This pattern offers us key levels to watch for the Ethereum price to get to and bounce from in the coming days. And right now, we are seeing ETH gradually trend lower to the Descending Triangle major support at $1,684.
In this Ethereum analysis, we will be talking about the possibility of a price bounce from this $1,684 key support in the coming days.
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Ethereum Approaching This Major Support! Should We Expect A Bounce?
This $1,684 key support has served as a major level for the Ethereum price over and over again in the past. And in the coming days, we believe there is a very high probability for us to see the Ethereum price bounce and reverse from this level.
A bounce like this would likely take us back to the top of the Descending Triangle Pattern before facing another major level in the 1-hour timeframe.
This would be more than a 10% rally in price and will give Ethereum that much-needed relief after days and days of back-to-back price sell-off we have been experiencing.
Final Verdict: Understanding The Larger Picture
It is important to note that Ethereum is currently trading in a Descending Triangle Pattern, and this pattern is a bearish continuation pattern.
But for us to confirm the start of the sell-off we need to wait for the completion of the pattern and a price break below the $1,684 key level.
Ethereum is currently approaching this $1,684 key level, but we believe the pattern is yet to be completed and therefore we should see one last bounce in price.
Once this bullish bounce is over, we believe the prices will resume their sell-off and drive Ethereum back down in the coming days.
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