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The Ethereum price is currently setting up for a potential sell-off in the coming days. The key pattern we are watching is the Head and Shoulders Pattern currently forming in the 1 hour timeframe.
This pattern is a high quality reversal pattern used by professional traders to time a change in the marrket trend. And for Ethereum, that change in trend is price selling off from its current highs.
In this ETH anaysis, we will be talking about the key levels we are currently watching as well as our bearish prediction for Ethereum in the coming days.
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Ethereum Head and Shoulders Pattern
The Head and Shoulders pattern has a standard way of being traded. And the image above is what that looks like.
For Ethereum to confirm the completion of the Head and Shouders pattern and the start of this sell-off back down, we need to see the ETH price brake and close below the Neckline support of $1,854.
Once this support gives way, we can expect to see the ETH price crash back down towards the $1,730 price level in the coming days. This is a potential -7% drop in the value of ETH.
This makes this $1,854 Neckline support the most important level the ETH bulls will need to defend if there want to stop this bearish move lower from happening.
Final Verdict!
The Ethereum price is currently forming a bullish reversal pattern in the 1-hour timeframe. This pattern indicates that we might see an ETH sell-off in the coming days.
But for this sell-off to be confirmed, the Ethereum price will need to break through a key support in the 1-hour timeframe. This $1,854 Neckline Support is the only level currenly stopping the ETH price from moving lower.
So in the coming days we will be keeping a close eye on this key support level to see how the ETH price will react to it.
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