For the past few days now, we have been warning our readers of the potential for this surge in the Ethereum price to be a bull trap and for us to see a price sell-off sooner or later in the ETH price.
In a recent analysis Warning: This ETH Rally Is A Bull Trap! Price Might Crash 40% Soon we talked about the key pattern that was confirming this bearish signal and how we plan to take advantage of it.
Well, at the time of publishing this article, the Ethereum price has finally begun to move lower. But is this the start of the sell-off or should we expect one more spike up before the real move down begins?
In this Ethereum analysis, we will be talking about the key levels to keep an eye on and what we believe might happen next in the coming days.
To trade ETH with leverage, sign-up to Bybit right now! Bybit’s BIGGEST Deposit Bonus Campaign is now live! First-time depositors can get up to a $4,100 Bonus when you sign-up and fund your Bybit account with our Bybit link.
Claim up to $30,030 in Bonus
What Should We Expect Next From Ethereum?
Ethereum is in a tricky spot and anything is possible at this point in time. We might see a price sell-off or a further rally higher before the real sell-off begins in the coming days.
However, one thing is constant and that is the $3,280 key resistance region. No matter what price decides to do, for it to remain bearish, the Ethereum price must continue to trade below this $3,280 key resistance.
So, even if we do see a price spike up come next week, we expect to see this key resistance hold the price back firmly on the 4-hour timeframe and eventually push the Altcoin price lower sooner or later.
We are still bearish on the Ethereum price and will remain bearish as far as the price continues to respect the converging triangle pattern playing out right now on the 4-hour timeframe.
This converging triangle pattern points to a coming sell-off for the ETH price! However, the big question now is “has the sell-off started?“
Well, that we can’t say for sure. But the key level to watch is the $3,280 resistance level. Even if the ETH price makes one last move up, we expect the price to stay below this key level.
Claim up to $30,030 in Bonus
Easy Steps From Beginner To Pro Crypto Trader
You can speed up your learning journey by reading our How To Trade Bitcoin Guide. This guide is the best for crypto traders who wants to get familiar with the basics of Bitcoin trading. You can also check out our top list of Best Bitcoin Exchanges To Trade With.
PrimeXBT Covesting: Trade Hassel Free
Sign-up on PrimeXBT today to trade Bitcoin hassle-free. You can copy experienced traders and access hundreds of different strategies on the platform! Don’t forget to claim your 25% bonus by using the promo code “bitcoinsensus50” when you sign-up with our link PrimeXBT Covesting