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In our previous Ethereum analysis Warning: This Ethereum Bearish Pattern Is Still valid!, we reaffirmed our bearish bias on Ethereum despite the bullish surge we saw happen after the CPI data for the U.S was released.
But why? In this Ethereum analysis, we will be breaking down what the Ethereum bigger picture looks like and why we are still bearish on this Altcoin for the short term.
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Ethereum Bigger Picture
The Ethereum price has been selling off aggressively for some time now, and we can see that sell-off play out clearly in the 1-hour timeframe.
However, for the past few weeks, we have seen that sell-off stall as Ethereum entered into a ranging market.
This ranging market created a Triangle pattern that broke out to the downside indicating that the Ethereum sell-off might not just be over yet.
And the best thing about the triangle pattern is that it has a standard set of Levels that must not be broken for it to remain valid. For Ethereum, that level is the $1,384 key resistance zone.
ETH $1,384 Key Resistance
For Ethereum to remain bearish, the Altcoin price must respect and continue to trade below the $1,384 key resistance in the 15 minutes timeframe.
As far as the price stays below this key level, there is a very high probability that we might see more selling pressure begin to come into the market in the coming days.
However, if this $1,384 key level fails, it invalidates our bearish prediction and indicates a possible rally higher for Ethereum. So the ETH bears will need to defend this key level at all costs.
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