In our previous Ethereum analysis A Longer-Term Outlook On Ethereum. Can This Level Stop A Sell-Off? we talked about the Ethereum key price level that has been serving as major support for the past year.
Well, as of the time of publishing this analysis, the Ethereum price is currently testing this key support level again on the 4-hour timeframe. And in the coming days, ETH would have to make a major decision to either hold this key support and continue to rally higher or beak through it and sell off even more.
In this Ethereum analysis, we will be breaking down these two price scenarios and talking about the key levels to watch for and what to expect in the coming days.
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Can Ethereum Hold On To This key Level?
It is very possible for the Ethereum price to find support and rally from this key level on the 4-hour timeframe. If this happens, we could currently be at the bottom of the Ethereum bear market and should be expecting a new bull run any time from now.
This would be a great relief for both Ethereum traders and hodlers who have seen the value of their ETH portfolios dump more than -56% these past few months.
What A Bullish Rally Would Look Like
We can easily confirm the start of the Ethereum bullish rally once we see the ETH price push up above the Neckline region specified in the image above.
A price break above this neckline region would push the ETH price into new highs, potentially changing the price structure of the Altcoin from bearish to bullish.
So until price breaks through this neckline, we stand aside and wait for this bullish confirmation to play out on the 4-hour timeframe.
Ethereum Bearish Outlook!
For the Ethereum bearish outlook, the key level to watch for is that multi-year support that has been holding the ETH price up since 2021.
Once that key support gives way, there is a very high probability that we might see a sell-off to the $1,706 horizontal price level in a matter of days.
This sell-off is about a -30% dump in the Ethereum price and has the same probability of playing out just like the bullish price scenario we talked about earlier in this Ethereum analysis.
Ethereum is currently testing critical support on the higher timeframe. If this level holds, we might see the Ethereum bearish market bottom out and begin to reverse in the coming days.
However, if this key level gives way under bearish pressure, there is a very high probability that we might see more price sell-off even lower in the coming days.
The question now is how will the Ethereum price react to this key level?
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