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The Ethereum price just dumped more than 4% in a matter of seconds. However, we believe this flash crash was all price manipulation by the big whales to shake off weak hands before the Ethereum bullish rally resumed.
The pattern we are watching to take advantage of this potential rally is the inverse head and shoulder pattern currently playing out in the 15 minutes timeframe.
We have been tracking this bullish pattern from our previous analysis Ethereum Inverse Head And Shoulders Pattern Completed! Rally To ATHs?
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IS The Inverse Head And Shoulder Pattern Still Valid?
The inverse head and shoulder pattern is still very valid. However, the Ethereum flash crash pushed the Altcoin price very close to our invalidation point.
For this inverse head and shoulders pattern to remain valid, the Ethereum price must continue to trade above this $4,204 invalidation level on the 15 minutes timeframe.
Ethereum Bullish Prediction!
For us to remain bullish on Ethereum, the ETH price must respect and continue to trade above this invalidation point for the inverse head and shoulder pattern currently playing out in the 15 minutes timeframe.
A price break and close below this $4,204 minor support only indicate a growing weakness and a potential continuation to the downside in the coming days.
Final Verdict!
The Ethereum bullish inverse head and shoulders pattern is still very valid, however, the price is trading around a critical level in the 15 minutes timeframe.
For us to remain bullish on Ethereum, the price must respect and continue to trade above this $4,204 key support level. A break below that key level only invalidates the inverse head and shoulder pattern and points to more sell-off for ETH.
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