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The Ethereum bulls are fighting back, trying to regain control of the Altcoin price and stop the sell-off we have been seeing playout for the past few weeks now.
And the key pattern we are currently watching to help us better understand this bull/bear tug of war is the Inverse Head and Shoulder Pattern currently playing out on the 1-hour timeframe.
In this Ethereum analysis, we will be talking about this key pattern and what it might mean for the Ethereum price in the coming days.
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Ethereum Inverse Head and Shoulder Pattern
The inverse head and shoulder pattern is a bullish reversal pattern that plays out when we are about to experience a trend change. This means there is a very high probability for us to see a bullish bounce in the Ethereum price very soon.
The key level we want to watch is the neckline region. This pattern can only be confirmed as valid if and only if the Ethereum price can break through and close above the neckline on the 1-hour timeframe.
Until this neckline is broken, this inverse head and shoulder pattern will only remain a potential reversal that is yet to be confirmed.
Bullish Target For This Inverse Head and Shoulder Pattern
The inverse head and shoulder pattern has a standard target and for Etherem that bullish target would be the $4,585 price region. This is a potential 12% price surge for Ethereum and could play out soon.
But for this bullish prediction to remain valid, the Ethereum price must break through the neckline region of the inverse head and shoulder pattern on the 1-hour timeframe.
If Ethereum fails to break through this neckline region for the inverse head and shoulder pattern and push higher, there is a very high probability that we might just see the Ethereum sell-off continue in the coming days.
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