Table of Contents
In a previous Ethereum analysis Ethereum Inverse Head and Shoulder Pattern. Watch This Key Level! we talked about the bullish reversal key pattern that was forming in the ETH 1-hour timeframe.
This pattern gave us the perfect level to watch when it comes to timing when the Ethereum price reverses and stops selling off. That level is the Neckline Region of the pattern and it is still yet to be broken.
Instead, we have seen the Ethereum price get to this key level again and reverse. This indicates that this level is very important for the Ethereum price and if we are to see the ETH bulls take charge of this market and push prices higher, Ethereum must break through this neckline region.
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.
What Next For Ethereum?
Well the inverse head and shoulder pattern is still very valid and there is still a high probability that it might play out soon especially as we move into a new week and trading volume begins to return back into the Ethereum market.
The key level we are watching is the Neckline Region of the pattern. We want to see the Ethereum price break through this key level and close above it come next week.
A price breakout like this would confirm the start of the rally and our potential 12% bullish surge to the $4,585 price target for the pattern.
Final Verdict!
Ethereum is currently showing signs that it wants to reverse and begin heading higher in the coming days. However, for this bullish reversal to be confirmed, the ETH price must break through and close above the neckline region of the inverse head and shoulder pattern playing out on the 1-hour timeframe.
Until this bullish confirmation is achieved, there is still a very high probability that the Ethereum price might just continue to sell off in the coming days. This makes the Neckline Region the most important level to watch out for on the ETH chart.
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
