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Is the Ethereum bearish trend about to come to an end? Right now, ETH is forming a massive Inverse Head and Shoulder Pattern on the 4-hour timeframe.
This pattern is a high-quality bullish pattern that if completed could see the Ethereum price surging as high as 33% in a matter of days!
But for this pattern to become valid, the Ethereum price must breakthrough and close and above the Neckline region of the pattern.
This Neckline region is the most important level for the bulls must break through to kick start this new bullish rally in Ethereum.
In this Ethereum analysis, we will be breaking down this Inverse Head and Shoulder Pattern, the key levels to watch for, and how we plan to take advantage of it in the coming days.
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Understanding The Inverse Head and Shoulder Pattern!
The Inverse Head and Shoulder Pattern is a unique price structure an asset will make when it wants to change trend from a Bearish trend to a Bullish trend.
Right now Ethereum, we have been in a multi-month bearish trend that has been playing out since late last year! This bearish move has pushed the ETH price more than -55% from its ATHs.
Well, now Ethereum is showing signs that the bearish sell-off might be over soon and we might begin to head back up!
This is where the Inverse Head and Shoulder Pattern comes in. It is giving us a price structure that helps us understand how this change in trend from the now bearish trend to a bullish trend might play out.
Pattern Confirmation Level To Watch Out For!
The most important level to watch out for right now is the Neckline region of the inverse head and shoulder pattern.
For this pattern to be completed and the bullish rally to begin, the Ethereum price must break through and close above the neckline region on the 4-hour timeframe.
The break of this key region would be the perfect indication we need to jump into a bullish trade for Ethereum.
Note: Until this key Neckline level is broken, we will stand aside and wait for our bullish confirmation.
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