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The Ethereum price is still very bearish, crashing more than 5% today after the bulls failed to break through the $3,204 key resistance level in the 4-hour timeframe. This bearish move played out exactly as we predicted in our previous analysis Warning: ETH Running Into Key Resistance! Price Crash To $2,500? but that Ethereum sell-off might just be getting started!
Right now, Ethereum is confirming our bearish bias by forming a bearish flag pattern just below that $3,204 key resistance!
If this bearish flag pattern plays out, there is a very high probability that we might see a massive dump in the Ethereum price soon!
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The $3,204 Key Level
The $3,204 key resistance is the line in the sand for the Ethereum bulls. For us to see any bullish price action in Ethereum, the price of the Altcoin needs to break and close above $3,204.
As long as Ethereum continues to trade below this resistance, we can expect to see more bearish price movement for the Altcoin! And right now, that is all that we are seeing playing in the 4-hour chart.
ETH Flag Pattern!
The flag pattern is a high-quality bearish pattern that offers us key levels to watch for a breakdown in price. And right now, Ethereum is still ranging within this 4-hour pattern.
The key level we are watching is the base channel of this flag pattern. For a bearish confirmation of an Ethereum sell-off, we need to see the Ethereum price breakthrough this channel and close below it in the 4-hour timeframe.
A bearish breakout like this would confirm the start of the Erhereum sell-off and point to more bearish price action in the coming days.
Final Verdict!
Ethereum is still very bearish with little to no sign of any building bullish momentum in the chart. And right now we are seeing Ethereum confirm this bearish bias in price by forming a flag pattern in the 4-hour timeframe.
If this pattern plays out, there is a very high probability that we might see a massive dump in price soon!
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