The Head Shoulder Pattern is a key reversal strategy that has been used over and over again by professional traders all across the globe. This pattern helps us spot potential bearish moves about to play out in the market and take advantage of it.
Right now, Ethereum is forming this Head and Shoulder Pattern on the 1-hour timeframe. This points to an increasing possibility of a price sell-off soon!
In this Ethereum analysis, we will be talking about the key levels to watch as well as how we plan to take advantage of this key pattern in the coming days.
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Key Levels To Watch On Ethereum!
The key level you want to keep an eye on in the Ethereum 1-hour timeframe is the Neckline. This is the most important level for the Head and Shoulder Pattern currently forming on the ETH chart.
A price break and close below this key level is the perfect confirmation we need to indicate the completion of the Head and Shoulder pattern and the start of the Ethereum bearish sell-off.
Note: Until price breaks through this Neckline region on the 1-hour timeframe, we will stand aside and wait.
Ethereum Bearish Target!
The head and shoulder pattern has a standard target, and that target for this Ethereum setup is the $2,791 price region.
This is a potential -8% drop in price for Ethereum and might play out in the coming days.
Ethereum is currently forming a bearish pattern on the 1-hour timeframe. This pattern points to a very high likelihood of price crashing back down to the $2,791 price region soon!
However, for this bearish pattern/prediction to come into play, The Ethereum price must break through and close below the Neckline region of the pattern.
Until this Neckline region is broken on the 1-hour timeframe, the Ethereum Head and Shoulder will not be ready to be traded.
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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.
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