The crypto market closed the day very bullish as we saw the ETH price rally through two key levels in the 4-hour timeframe. This bullish breakout pushed the Ethereum price deep into bullish territory potentially ending the ETH sell-off we have been experiencing all through last month!
However, the big question traders all over the world are asking is: is this Ethereum rally a breakout or a fakeout?
In this Ethereum analysis, we will be talking about the key levels we are watching as well as what we believe the Ethereum price might do next in the coming days!
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ETH Key Levels To Watch!
The Ethereum price broke through the flag pattern and the $3,204 horizontal resistance we have been tracking in the 4-hour timeframe for a while now. This bullish breakout puts the Ethereum sentiment into bullish territory.
But for that bullish sentiment to remain valid, the ETH price needs to keep on trading above the $3.204 key level in the 4-hour timeframe.
The $3,204 horizontal level is the line in the sand for the Ethereum bulls, and a price break back below it could see ETH crashing again. This makes it very important for the Ethereum bulls to defend this 4-hour key support in the coming days.
Ethereum Price Also Testing Another Key Patteren
The Ethhereum price is also testing the support of a key ascending channel pattern in the 4-hour timeframe. This pattern is a very key pattern in the Ethereum price chart because the Altcoin price respected it for months before finally breaking down.
And right now the Ethereum price is testing the base support of this ascending channel pattern in the 4-hour timeframe.
If the price is unable to break through, we might see another crash in Ethereum price soon!
Final Verdict!
Ethereum is trading between two key levels right now. The ascending support serving as price resistance in the 4-hour timeframe and the $3,204 horizontal support the bulls need to hold for this current rally in Ethereum to remain valid!
And in the coming days, we can expect the price to make a decision in what direction the Ethereum trend will follow soon!
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