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In our ETH previous analysis, ETH Setting Up For One Last Dump Before This Massive Rally! we identified the Head and Shoulders Pattern that was forming at the $1,779 key support zone in the 4-hour timeframe.
We warned our readers that this unique pattern is a bearish indication. If it plays out exactly, we might see another quick sell-off in the Ethereum price.
Well, that Head and Shoulders Pattern is still playing out exactly as predicted! And in this ETH analysis, we will be going a step further, talking in-depth about what we expect to see and the key levels you should be keeping a close eye on.
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ETH Head and Shoulder Pattern
The Ethereum price is right now still forming the right Shoulder for this key pattern.
Once this right shoulder is completed, we expect to see the ETH price sell off aggressively to complete this Head and Shoulders bearish pattern in the 4-hour timeframe.
If this bearish prediction plays out, there is a very high probability for to see Ethereum crash back down to the $1,747 price region or even lower in the coming days!
Timing The Start Of The ETH Sell-off
To confirm the completion of the Right Shoulders and the start of the sell-off for the ETH Head and Shoulders Pattern, we need to see the Altcoin price break through and close below the neckline support in the 4-hour timeframe.
Once the ETH price can close below this key support, this indicates that the bears are in full control and we can expect to see ETH face bearish pressure, pushing the Altcoin price to the downside.
We are right now bearish on ETH. And the key pattern supporting this bearish bias is the Head and Shoulders Pattern currently forming in the 4-hour timeframe.
If this pattern plays out, there is a very high probability that we might see the ETH price make a quick dump back down to the $1,747 price region in the coming days.
But for this bearish prediction to become valid, we need to see the ETH price break through and close below the neckline support in the 4-hour timeframe.
Until this bearish breakdown occurs, we will stand aside and wait for that bearish confirmation.
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