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In our previous Ethereum analysis Why This Ethereum Rally Could Be A Bull Trap! Watch These Key Levels, we talked about the two key resistance the Ethereum bulls might face in the coming days, and how it could affect this bullish rally we are seeing play out on Ethereum.
Right now, Ethereum is testing the first key resistance on the 4-hour timeframe. Can the price break through this key level or will we see a collapse as we predicted?
In this Ethereum analysis, we will be breaking down the possible price scenarios for Ethereum as well explaining why we are still short-term bearish on the Altcoin.
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Ethereum Converging Triangle Key Resistance!
The key resistance the Ethereum price is testing right now is the resistance channel of the Converging Triangle Pattern forming on the 4-hour timeframe.
The Ethereum price has been trading in this pattern for weeks now and might continue to do so in the coming days. But for it to remain within this converging triangle pattern, the Channel resistance must hold.
This converging triangle pattern channel resistance is the first key resistance for the Ethereum bulls. And how price reacts to this level can help us understand better what Ethereum might do in the coming days.
What Happens If Ethereum Fails To Break Through This Level?
If this converging triangle resistance holds, we can expect to see the Ethereum price get pushed back into the pattern range. This could lead to more sideways trading in the Ethereum price for the coming days.
What Happens If Ethereum Breaks Through This Level?
However, if the Ethereum price manages to break through this 4-hour converging triangle pattern, Then we will look to the next key level we talked about earlier.
And that key level is the $3,200 horizontal resistance just above the converging triangle pattern.
Final Verdict!
The Ethereum price has two key resistance it must breakthrough if it decides to move higher in the coming days.
And right now, the Ethereum price is battling with the first key resistance and consolidating around that area, showing signs that the Ethereum bears might not be ready to give up just yet. Should we expect to see a sell-off in the coming days?
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