The Ethereum price recently broke through key support on the 1-hour timeframe and is currently retesting it as a new resistance before continuing on its way lower.
A price breakdown and retest like this is usually common when an asset switches trend from bullish to bearish. And right now, the price action we are seeing play out on the Ethereum 1-hour timeframe points to the Altcoin switching trends.
In this Ethereum analysis, we will be talking about this bearish outlook as well as the key levels we will be watching in the coming days.
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Ethereum Retesting Previous Key Support! What Next?
The Ethereum price is currently retesting the previous key support on the 1-hour timeframe, showing clear signs that the ETH trend might be changing and we might see the Altcoin sell-off rapidly in the coming days.
However, it is still very possible for the Ethereum bulls to negate this bearish move and push the Altcoin back up. But for this sell-off to become invalid, the ETH bulls need to break back above the $4,156 previous highs on the 1-hour timeframe.
As far as Ethereum continues to trade below this $4,156 key level on the 1-hour timeframe there is a very high probability that ETH might sell off rapidly soon!
How Far Can ETH Drop?
For the ETH bearish scenario, the first target we are watching is the next Ethereum key support on the 1-hour timeframe. This key support is the $3,356 price level.
The last time we saw a flash crash, the Ethereum sold off to this price area before reversing showing a strong pool of Ethereum support around that $3,356 price region.
This is a potential 11% dump in price and might be playing out in the coming days.
The Ethereum price is gradually changing trend from a bullish one to a bearish trend in the 1-hour timeframe. This bearish bias will remain valid as far as the Ethereum price continues to trade below the ETH $4,156 previous highs on the 1-hour timeframe.
Until ETH breaks through this horizontal resistance, we can expect to see the Altcoin price continue heading lower.
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