In our previous Ethereum analysis ETH $1,690 Resistance Holding Strong! Watch This Bearish Prediction we warned our readers of the potential for us to see more weakness in Ethereum in the coming days.
Well, this price weakness is growing as we speak and right now we are seeing the Ethereum price gradually sell off, playing out exactly as we predicted.
In this Ethereum analysis, we will be breaking down what we think is currently happening on the Ethereum price chart as well as the key levels that we are keeping a close eye on for the rest of the week.
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Our Bearish Out Look For Ethereum
Our Ethereum bearish prediction is playing out, and this ETH sell-off is happening within a new pattern that just started forming in the 4-hour timeframe.
The Pattern we are talking about exactly is the Bullish Flag Pattern currently playing out in the ETH 4-hour timeframe.
This pattern is very important because it provides us with a clear picture of how we expect this bearish sell-off in Ethereum to play out!
But not only that, this Flag Pattern will also help us time exactly when the ETH sell-off is over.
The image below is what a completed Bullish Flag Pattern looks like! So we know that once the Ethereum price breaks through this Flag Pattern in the 4-hour timeframe, this might be an indication that the bulls are back.
What Now For Ethereum?
Well, we know that the Ethereum price is still bullish and this current sell-off we are experiencing is only a pullback before the bullish rally continues.
The problem now is “we do not know how far back the ETH price is willing to pull back before finding support and bouncing” The first level we are watching is the $1,477 key support.
Once we combine this $1,477 key support and the new flag pattern forming right now in the 4-hour timeframe, we can (with higher accuracy) pinpoint exactly when this Ethereum sell-off might end.
For now, Ethereum is still trading within this Flag Pattern, so there is a high probability that we might see more push to the downside in the coming days.
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