In our previous Ethereum analysis Ethereum Sell-Off Stalling Under This Key Resistance. What Next? we talked about the Ethereum price forming a higher-low structure and the potential for the Ethereum price to range for a bit before continuing its bearish move to the downside.
Well, that small price range we spotted earlier in that analysis created a bearish Horizontal Channel Pattern on the 1-hour timeframe.
This pattern is a bearish continuation pattern and we can see that the Ethereum price has already given us a Bearish Confirmation pointing to more sell-off to come on the 1-hour price chart.
The price break of the base channel of the Horizontal Channel pattern is the perfect confirmation we need to indicate that the ETH sell-off might continue very soon!
Right now, Ethereum is retesting that previous support, confirming it as the new resistance for Ethereum on the 1-hour timeframe before it continues heading down.
In this Ethereum analysis, we will be talking about the key levels to watch as well as the likely target for this continued sell-off in the coming days.
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Key Levels For The Horizontal Channel Pattern!
The Horizontal Channel Pattern will remain valid as far as the ETH price continues to trade below the resistance channel of the pattern on the 1-hour timeframe.
This means we could have a deeper retracement in the ETH price and still remain bearish as far as that retracement falls below the resistance channel of the pattern.
With this in mind, this offers us the perfect spot to place our stop loss for a potential bearish trade to the downside in the coming days.
Bearish Target For Ethereum
We still believe there is a very high probability for the Ethereum price to get to the $1,715 key support level in the coming days.
This is a 4-hour major support level for Ethereum and the last time the ETH price got to this support we saw massive bullish demand come into the Ethereum market.
If history repeats itself, then there is a very high probability that buyers are currently sitting around that area waiting for the ETH price to get there in the coming days.
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