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In our previous Ethereum analysis, Ethereum Flag Pattern Playing Out As Predicted! Watch These Key Levels we talked about the key bearish flag pattern that was currently forming on the ETH 1 hour timeframe and how that could lead to a massive sell-off in the coming days.
Since publishing that article, the Ethereum price has sold off to the base support of the flag pattern and nearly broke through!
This base support is a key level for the flag pattern, if the price had broken through and stayed below this key level, it could have potentially triggered the Ethereum sell-off we have been warning our readers about.
Instead, we are seeing the ETH bulls come back into the market, trying to hold the prices up as the Altcoin bounces from this level heading higher. In this Ethereum analysis, we will be following the current price and updating what we think might happen next in the coming days.
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The Ethereum Flag Pattern Still In Full Play!
The Ethereum flag pattern is still playing out, this bounce we saw only means that the ranging period for the pattern is not yet over! This means we can expect to see the ETH price find resistance at the top channel of the pattern in the coming days.
It is important that the ETH price does not rally and break through this channel resistance if we want this flag pattern and our bearish outlook on Ethereum to remain valid.
What Can We Expect Next!
If you have been following our Ethereum analysis, then you know the first key level we are watching for a bearish confirmation that the Ethereum sell-off as started is the base channel of the flag pattern on the 1-hour timeframe.
So, we are expecting that to play out in the coming days. We want to see Ethereum crash, breakthrough the base support of the flag pattern, and stay below it to confirm the end of the ranging market and the start of the sell-off.
Until a price action like this plays out, we will stand aside and wait for Ethereum to decide on what it wants to do or for it to invalidate the flag pattern we are currently tracking on the 1-hour timeframe.
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