In our previous Ethereum analysis Warning! Is This A Price Break Down Or A Fake Out? we warned our readers of a possible bearish fakeout setting up in the ETH 4-hour timeframe.
At the time of writing that article, the Ethereum price had just broken out of the 4-hour Flag Pattern and was heading lower.
We identified the $1,503 key support level as the price region the ETH bears had to push the Ethereum price below for this Flag pattern sell-off to become valid!
Well, more than 12 hours later, Ethereum is still yet to break below this 4-hour key support. Instead, we are beginning to see the Altcoin price bounce and attempt to rally higher.
What does this price bounce mean for Ethereum and what should we be expecting in the coming days?
In this Ethereum analysis, we will be breaking down the current price action in Ethereum and the key levels we are watching.
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What is Ethereum Doing Right Now?
There is a possibility of ways to interpret exactly what the Ethereum price action is doing right now.
For The Bulls: We can say the price is Bouncing off the $1,503 support and pushing higher or
For The Bears: We can say Ethereum is doing a break and retest of the flag pattern and is getting ready to sell off.
No matter what direction you lean to, the one constant is this “as far as Ethereum continues to respect and trade above the $1,503 key support, the bulls are in control”
What Does This Mean For Ethereum?
It means the Ethereum trend is still undecided. And there is still a 50/50 chance that the trend can go in either direction.
But one thing is clear. The $1,503 key support in the 4-hour timeframe is the most important level you should be keeping an eye on.
As far as this level holds, there is a probability that this price breakdown might only be a fakeout before the ETH rally continues.
However, if this $1,503 key support gives way, Ethereum has a very high probability of pushing much lower in the coming.
To check out the bearish targets to watch for if the bearish scenario plays out, read our previous TA Warning! Is This A Price Break Down Or A Fake Out?
In Other News…
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