In our previous ETH analysis Warning: Massive Sell-Off Coming For ETH! Watch This Flag Pattern we talked about the bearish flag pattern the Ethereum price is currently trading in the 4-hour timeframe.
This flag pattern provides us high-quality support and resistance levels to watch for price reactions in ETH for the coming days, and right now Ethereum is testing the base channel of this pattern.
This base channel has served as a strong support level for Ethereum on numerous occasions and might do so again if this level continues to hold in the 4-hour timeframe
In this Ethereum analysis, we will be talking about this support region as well as the short term bullish bounce that might occur in the Ethereum price soon!
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ETH Key Levels To Watch
The key level we are watchig is the base of the flag pattern. For this Ethereum bullish prediction to remain valid, the Altcoin must continue to respect this key channel support in the 4-hour timeframe.
A break below this support channel invalidates this bullish prediction and points to the end of the Etherum ranging market and the resumption of the price sell-off we have been experiencing almost all month.
This makes this bearish flag pattern support the most important key level the Ethereum bears need to breakthrough to continue the price dump.
Until that breakdown occurs, the Ethereum price can be said to be in a ranging market, trading sideways within the flag pattern.
Final Verdict!
We are still very bearish on Ethereum and will reamin bearish as far as the price continuies to trade below the $3,204 horizontal key resistance in the 4-hour timeframe.
However, Ethereum is showing signs of a short term bullish bounce as the Altcoin price finds support and continues to range within the bearish flag pattern in the 4-hour timeframe. If this support holds, we can expect to see historical price action repeat itself in the Ethereum chart soon!
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