Table of Contents
In our previous Ethereum analysis Urgent! ETH Sell-Off About To Begin! Get Ready we talked about
- The bearish Head and Shoulders Pattern forming right now
- The key level we need to see the ETH price break through to confirm the start of the sell-off
- And the likely bearish target we expect to see play out.
Since publishing that TA, we have seen the ETH bears continue to battle with this $1,800 key support level in the 4-hour timeframe and failed to break through it.
This means for now, we will continue to stand aside and wait to see bearish momentum come into the market and push the Altcoin below this $1,800 support.
However, for this ETH TA, we will be talking about the invalidation point for this Head and Shoulders Pattern and what the ETH bulls must do to stop any further sell-off in this market.
To trade ETH with leverage, sign-up to Bybit right now! Bybit’s BIGGEST Bonus Campaign is now live! You can get up to a $30,000 Bonus when you fund your Bybit account with our Bybit link
Invalidation Point For This Pattern
For us to remain bearish and for this Head and Shoulders Pattern to remain valid, we need to see the ETH price respect a key resistance level in the 4-hour timeframe.
This resistance level is the $2,019 previous high.
If the Ethereum price breaks above this $2,019 (previous highs now turned new resistance level) this would create a bullish price structure that invalidates our bearish bias and points to a high chance for us to see Ethereum begin to push back up.
So What Now?
We are still very bearish on Ethereum and believe the sell-off is coming. The key pattern we are waiting to take advantage of is the Head and Shoulders Pattern playing out in the 4-hour timeframe.
However, for this bearish pattern to remain valid, we need to see the Altcoin price continue to respect and trade below the $2,019 key resistance level in the 4-hour timeframe.
This $2,019 resistance is the invalidation point for our bearish pattern and may indicate a change in trend.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. It can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of top Bitcoin Exchanges To Trade With.
PrimeXBT Covesting: Trade Hassel Free
Sign-up on PrimeXBT today to trade Bitcoin hassle-free. You can copy experienced traders and access hundreds of different strategies on the platform! Don’t forget to claim your 25% bonus by using the promo code “bitcoinsensus50” when you sign-up with our link PrimeXBT Covesting
