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In a previous Ethereum analysis Urgent: What Ethereum Must Do To Become Bullish we talked about the Descending Channel Pattern currently playing out in the Ethereum 4-hour timeframe and how the price needed to break through this pattern to become bullish again.
Well Ethereum has been trying to breakout from this pattern but has failed in all instances. And with every failure comes a renewed push to the downside.
Right now, the Ethereum price is testing this key resistance level again and the question traders are asking is “will we finally see a bullish breakout to the upside or will this be like all the previous failed attempt to breakthrough this Descending Channel pattern?”
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What Exactly Are We Watching For?
The image above is a typical example of what a bullish breakout from a Descending Channel Pattern looks like. This is the kind of price action we want to see play out in the Ethereum price in the coming days.
Right now, the Ethereum price is testing the resistance region of this pattern, showing us signs that it might be ready to fianally breakout. But until it does, it is best to stand aside and wait for that bullish confirmation in price.
The image below shows you exactly what kind of bullish confirmation we are waiting for in price
We want to see the ETH price clearly breakthrough and close above the $2,882 resistance level in the 4-hour timeframe.
A breakout like this would confirm that this $2,882 previous resistance level is now turning into support for the ETH bulls to push the Altcoin price higher from.
What Happens If Price Fails To BreakThrough This $2,882 Level?
If the ETH price fails to breakthrough this 4-hour support, there is a very high probability that the ETH bears may take advantage of this $2,882 key level to resume pushing the Ethereum market down.
This makes it very important for us to see this bullish confirmation (a price breakthrough and close above the $2,882 level in the 4-hour timeframe) before we start looking for any buy trade on the currency.
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