Table of Contents
In our previous Ethereum analysis Must Read: Has The ETH Sell-Off Started? Watch This Key Level, we warned our readers of a very high probability for us to see one last move higher into our $3,280 key resistance zone before the Altcoin price begins to sell-off.
This 4-hour key zone has served and continues to serve as a major resistance for the Ethereum price, and we expect to see this key level hold again in the coming days.
Not only that, this $3,280 resistance zone also serves as the completion point for the bearish converging triangle pattern we have been tracking for a while now on the 4-hour timeframe.
If this pattern completes and the bearish prediction plays out, we expect to see a massive sell-off in the Ethereum price in the coming days.
In this ETH analysis, we will be giving our readers an update on what the price is doing right now and what we expect to come into play soon!
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The Bulls Losing Steam! Watch This Divergence
The Ethereum bulls are finally losing steam as the price inches closer and closer to that $3,280 resistance zone on the 4-hour timeframe.
This drying volume in the Ethereum bullish rally is causing the price to diverge from the volume indicator (while the price is rising, the volume indicator is dropping drastically).
A clear sign of growing weakness for the Ethereum bulls. Meaning sooner or later this move up will reverse!
This plays well with our key levels and what we expect to see as price approaches a major turning point. It also provides price/indicator confluence for our bearish prediction on Ethereum, increasing the probability for it to play out.
Watch This Key Level For The Start Of The Sell-Off
The question we will be attempting to answer in this section is “How do we know when the sell-off has started?’
The key level we are watching for this is the $2,824 price level. This level serves as a minor support for Ethereum on the 4-hour timeframe.
If this minor support gives way, there is a very high probability that the move higher has ended and the ETH sell-off has begun.
Final Verdict!
We are at the final stage of the move up, we are already seeing price weakness, bullish volume drying up, and massive selling pressure coming into the market from the $3,280 key zone.
All we are waiting for now is for the Ethereum price to crack under all this bearish pressure and start heading lower. And the best level to tell us that is the $2,824 minor support.
If the price breaks back below this 4-hour minor support, there is a very high probability that the ETH sell-off has started.
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