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The Ethereum ranging market is entering into its final phase on the 4-hour timeframe. This sideways market has been in play since late January and has kept the Ethereum price bouncing around specific price regions on the chart.
This range successfully formed a Converging Triangle Pattern that we have been tracking for a while now on the 4-hour timeframe.
This triangle pattern offers us key levels to watch for the ETH price to find support and resistance. But right now that pattern is entering its final phase and the ETH price might be ready to breakout.
The question traders are now asking is “In what direction should we expect the ETH price to breakout from this triangle in the coming days?”
In this Ethereum analysis, we will be breaking down our direction bias for the Ethereum breakout and why we are thinking like that.
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Ethereum Might Resume Larger Bearish Trend!
There is a very high probability that the Ethereum price will break out of the Triangle pattern to the downside and resume the overall bearish trend on the Altcoin.
And the main reason we believe this might happen is the nature of the triangle pattern.
A triangle pattern will mostly play out as a continuation pattern! That is, if the price was selling before the pattern formed, the price will continue selling after the triangle pattern completion
That means for the Ethereum price, there is a very high probability that we might see the ALtcoin breakout to the downside and continue to sell off a bit more in the coming days.
Final Verdict!
As the Ethereum ranging market is entering into its final phase, we are leaning toward a more bearish breakout in the coming days.
This bearish move will be a continuation of the larger sell-off we have been witnessing on Ethereum since last year. This sell-off could see us touching the $1,600 price region before finding major support again.
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