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In our previous Ethereum analysis, ETH Has Barely Moved All Week! What is Happening? we identified the ETH Flag Pattern that was currently forming in the 4-hour timeframe and warned our readers that Ethereum might be setting up for a massive move soon!
This Flag pattern is very unique because the price can either break to the upside or downside. And right now, we are seeing what looks like a breakdown to the downside for the Altcoin price.
In this Ethereum analysis, we will be taking a closer look at this breakdown and trying to understand if this might be a fake-out. We will also be talking about the key levels we are currently watching in the 4-hour timeframe.
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ETH Bullish Flag Pattern
The most important level for the Flag Pattern right now is the $1,503 key support level. This is the level the Ethereum bears need to push the price below for us to confirm the start of a possible move lower for the Altcoin.
But right now, we have seen Ethereum deep below this $1,503 key support level in the 4-hour timeframe and bounce from it! This price bounce shows that the bulls are still fighting to hold on to this uptrend and if this level continues to get respected, we might see Ethereum find support and begin to rally from this region in the coming days.
So for now it is important to stand aside and wait for the $1,503 key support to be broken before jumping to any bearish conclusion (this is the best way to avoid getting faked out in this move).
What Happens If Ethereum Continues To Sell Off?
If the Ethereum bears can manage to push the ETH price below the $1,503 key support, there is a very high probability that we might see more bearish follow-through happen in the coming days.
This bearish follow-through would likely push the Altcoin price back down to the Descending Channel Pattern we broke out of early this year.
Final Verdict!
Right now, we are watching the $1,503 key support in the 4-hour timeframe to see if the bears can successfully push the Altcoin price below this key level in the coming days.
If this happens, there is a very high probability that we might see more sell-off in Ethereum for the rest of the week. However, if this $1,503 support holds, this initial sell-off might just be a bearish fakeout to catch traders off guard.
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