The Ethereum price has been inching higher for days now. However, the Ethereum bulls are currently fighting to break through a major level in the 15 minutes timeframe.
We have seen this $1,233 price level serve as key resistance on multiple occasions in the past, this increases the probability for it to do so again in the coming days.
In this Ethereum analysis, we will be breaking down our bearish outlook on Ethereum as well as the key reversal pattern forming right now at that level!
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Ethereum $1,233 Resistance Level.
This key level is very important to the Ethereum bears because a price break and close above it signifies the invalidation of the bearish triangle pattern that formed earlier this month.
The Ethereum price is still yet to smash our bearish target for this Triangle pattern, this means the ETH sell-off might not be over just yet.
But for that bearish prediction to remain valid, the Ethereum price must continue to trade below the $1,233 key resistance.
If the bulls can manage to push prices above the $1,233 key level, this will invalidate the Triangle pattern and increase the potential for a bullish surge to happen instead.
What Is Ethereum Doing Now?
Well right now, we are beginning to see a bit of weakness come into the Ethereum market as the price continues to test this $1,233 key level.
This weakness can be clearly tracked by the MACD indicator as the price is currently diverging a lot.
This Bearish Divergence could indicate that Ethereum might be getting ready to sell off sooner or later.
We can see a clear explanation of what a Bearish divergence means in the image below.
In simple terms, what this bearish divergence means is “bullish volume is dying down and bearish sentiment is growing” professional investors use this as a bearish signal to get ready for a sell-off.
We are still bearish on the Ethereum price and will remain bearish until the bulls can break through and close above the $1,233 key resistance level.
Until a bullish breakout like this occurs, there is a very high probability that Ethereum’s price might still sell off. And right now we are seeing a bearish divergence play out, supporting this move lower.
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