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In our previous Ethereum analysis Ethereum Playing Out Exactly As Predicted! What Next? we talked about the $3,164 key resistance level on the 4-hour timeframe and how the ETH price needed to break through that key resistance to become bullish again.
Well, the Ethereum bulls have failed to break through that key level instead we have seen a major push back down in prices. This bearish move invalidates our bullish bias and points to a very high likelihood for us to see the trend continue lower in the coming days.
In this Ethereum analysis, we will be breaking down exactly what we think is about to happen next and the key levels we will be watching out for as the day goes by.
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ETH Back In The Descending Channel Pattern. Will History Repeat?
The Ethereum price has been selling off for months, this sell-off has been unique with the ETH price doing the same thing over and over again when it wants to make a new low.
The ETH price sells off rapidly, finds a base then ranges/trades sideways around that base for a while before breaking through it and repeating the process over again.
Well, if you are watching the Ethereum 4-hour timeframe, you might see that process is getting ready to be repeated again. However, for this bearish prediction to remain valid, the ETH price must continue to trade below this current resistance.
Bearish Target For Ethereum
Our bearish target for this potential move to the downside is the base support of the Descending Channel Pattern currently playing out on the 4-hour timeframe.
This key level has been held on different occasions in the past and we believe it might continue to serve as major support for Ethereum in the coming days.
The Ethereum price is looking set to make a move lower back to the base of the Descending Channel Pattern currently playing out on the 4-hour timeframe.
However, this bearish bias can only remain valid if the ETH price respects and continues to trade beloe that major key resistance level on the 4-hour timeframe.
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