After crashing more than -7% just yesterday alone, the Ethereum price has done a 360-degree reversal and is now trading at previous highs again.
This quick reversal shows great signs of strength for the Ethereum bulls and indicates we might see further price rally in the coming days.
But is this the end of the Ethereum sell-off or should we expect more bearish price action as we go into the weekend?
In this Ethereum analysis, we will be breaking down our thoughts on what we believe might be the next move for Ethereum in the coming days and the key levels to watch out for.
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A Look At The Bigger Picture
The Ethereum price is in bullish territory and has been in bullish territory ever since the Altcoin broke through the converging triangle pattern that was forming in the 4-hour timeframe.
This converging triangle pattern bullish breakout provides us with a standard target and for Ethereum that target is the $4,000 price region. This means we believe the Ethereum bullish move still has some ways to go before getting exhausted.
The retracement we saw play out yesterday was just a price pullback after days of the Ethereum price rallying higher consistently.
The Key Level To Watch Out For!
The most important level for Ethereum is the $3,026 key support region on the 4-hour timeframe.
As far as the Ethereum price holds and continues to respect this key region on the 4-hour timeframe we believe the Ethereum bullish prediction will remain valid. However, a break below it is very bad for the ETH bulls.
So no matter what happens in the coming days, we expect to see this $3,026 key zone continue to hold and push the Ethereum price back up.
What Should We Expect During The Weekend?
The weekends are known for their low trading volume for cryptos in general. This means there is a very high probability that we might see Ethereum begin to slightly fade back down or trade sideways as the weekend rolls by.
However, this concept of retracement on the weekends is not set in stone and we never know for sure what the Ethereum price will do. But in the case we see the Ethereum price start to fade back down, it is important to remember that this in no way means weakness for the bulls or an end to the Ethereum bullish rally anytime soon!
The Ethereum price is still respecting the Converging Triangle pattern and the breakout from that pattern is what is currently driving this rally, we believe we still have some ways to go before we smash our price target at $4,000.
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