In our previous Ethereum analysis Is Ethereum Bullish/Bearish and Why Is This Key Support So important? we divided the ETH chart into 2 zones.
- The Bullish territory (the ETH price trading above the $1,707 key support region)
- And the Bearish territory (the ETH price breaking through and trading below the $1,707 key support)
Well since publishing that article, we have seen the Ethereum price try to rally but failed to push much higher as bullish momentum is still very lacking.
This lack of bullish momentum only points to some kind of hesitance from traders who are still worried that the fundamentals might still not be that favorable for crypto just yet.
Well, in this Ethereum analysis, we will be exploring the possibility of a bearish move and break below $1,707. We will be trying to answer the question “if this kind of sell-off were to occur in ETH, what and what should we be watching out for?”
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What Will the Ethereum Bearish Scenario Look Like?
For us to become bearish on Ethereum, we need to see a clear break and close below that $1,707 key support zone in the 4-hour timeframe.
A move down like this would immediately push the Altcoin into bearish territory and increase the possibility for us to see a further push down in the coming days.
Not, only that, a bearish break below this support will also provide us with a Head and Shoulders Pattern! This pattern is also a bearish indication and points to a deeper move lower for the Altcoin price.
So no matter how you look at it, Ethereum cannot become bearish until it breaks through that major 4-hour support.
What Does This Mean For Ethereum?
Well, it means that the Ethereum price is still trading at a critical level in the 4-hour timeframe.
This $1,707 support zone is so important because we have multiple bearish confluences sitting on it. And if the bulls fail to defend and hold on to this $1,707 key support, there is a very high probability that we will see massive selling pressure come into the market once the level gives way.
But that is still yet to happen because the Ethereum bulls are still fighting to keep the ETH price above this key support and in the bullish territory. All we need now is more bullish momentum coming in as well to begin pushing the price even higher.
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