A lot is going on in the Ethereum price chart, and in this ETH analysis, we will be breaking each of these activities down in its simplest form for you to better understand.
The Ethereum Larger Picture!
The Ethereum price has been trading within a Channel Pattern for more than a few months now. This Channel Pattern has provided us with solid support and resistance levels we have seen the Ethereum price continue to respect all this while.
And right now, we are seeing the Ethereum price gradually trending lower back to the base support of this Channel pattern.
This is why we are currently bearish on the Ethereum price chart, we believe there is a very high probability that we might see the ETH price sell-off to this Channel Support before bouncing back up.
If this bearish prediction plays out, this could easily see the Ethereum price falling down to the $2,655 price level in the coming days before encountering any major support.
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Understanding The Ethereum Current Bearish Trend
To better understand and track the Ethereum bearish trend, we are currently watching the ETH price form a Descending Channel Pattern.
This Descending Channel pattern helps us create a solid Channel support and resistance Ethereum needs to respect as it continues to move lower.
This pattern is very important for us to better understand the ETH trend because Ethereum can not become bullish until it breaks through this key Descending Channel Pattern in the 1-hour timeframe.
The image above is a great example of what a bullish breakout from a descending channel pattern looks like. For Ethereum to become bullish, this is exactly what we expect from the Altcoin price.
So it is important to keep an eye on this pattern to know exactly when the ETH price switches from a bearish trend to a bullish one.
For Ethereum that would involve a price break above the $2,980 key resistance in the 1-hour timeframe.
What Is Ethereum Doing Now?
Well, Ethereum is still trading within this Descending Channel pattern in the 1-hour timeframe. And as far as the Altcoin price remains within this chart pattern and below the $2,980 key resistance level, we can expect to see more bearish pressure continue to push Ethereum lower.
So for now, we will remain bearish on Ethereum and continue to watch to see how the price develops as the days go by.
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