The Ethereum price ended the week bearish, down about -8% from its recent high. However, we believe that the ETH sell-off might be coming to an end soon!
Right now, the Ethereum price is trading at key support on the 4-hour timeframe. This key region served as major resistance in the past before the Ethereum price finally broke through it.
This current pullback we are witnessing can be classified as a bullish retest confirming the previous resistance as new support before the Ethereum bullish rally continues.
We have seen this kind of price action play out a lot, especially for the converging triangle breakout patterns. And below is a typical example of what that looks like.
The same image is also playing out right now on the Ethereum 4-hour price chart. This means that the sell-off we have been seeing play out all through the week does not in any way change the bullish direction of the Ethereum price yet!
Once the Pullback/Retest is over there is a very high probability that we might see the Ethereum price begin to surge back up in the coming days.
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Ethereum Bigger Picture
It is important to remember that the technical analysis driving this bullish rally in the Ethereum price is the Converging Triangle Pattern currently playing out in the 4-hour timeframe.
This pattern comes with a standard target and the Ethereum price is still yet to smash it. So once this pullback is over, we expect to see the Ethereum price resume its rally back up to this $4,000 bullish target in the coming days.
But for this bullish prediction to remain valid, a very key important support must be respected.
The Most Important Key Support For Ethereum
For the Ethereum bullish prediction to remain valid, the $3,026 horizontal support must hold. This 4-hour key support region is the most important level for the Ethereum bulls for now.
A break below this key level could signal weakness and lead to more bearish pressure build-up for the Ethereum price. This makes it very important for the ETH bulls to hold on to this $3,026 key level at all costs!
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