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In our previous Ethereum analysis Ethereum Building Bearish Momentum Below This Major Level. What Next? we talked about the current consolidation the ETH price was making below the $2,445 key resistance in the 4-hour timeframe and what that would look like in the coming days.
However, for that analysis, we only looked at a breakout to the downside once the consolidation phase was over.
In this Ethereum analysis, we will be talking about a price scenario for Ethereum that includes a bigger relief rally to the upside once that consolidation phase completes.
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Ethereum Consolidation Playing Out As Expected!
The consolidation phase is still going on right now for Ethereum in the 4-hour timeframe. We are seeing the ETH price respect this smaller rectangle pattern currently forming below the $2,445 key resistance region in the 4-hour timeframe.
But once this consolidation is over, we expect to see a massive breakout/breakdown in the ETH price in the coming days.
We already talked about what a breakdown would look like in our previous analysis Ethereum Building Bearish Momentum Below This Major Level. What Next? But for this analysis, we will be talking about what a price break to the upside would look like.
Should We Expect A Bigger Relief Rally?
If the Ethereum price breaks through this rectangle pattern to the upside, then there is a very high probability that we might see a much bigger relief rally in price to the upside before the ETH bears gain full control of the market again.
This kind of rally could push us to retest the Channel Pattern we broke out of in the 4-hour timeframe before resuming the ETH fall to the downside.
A price scenario like this is very possible, so it is important we keep an eye on Ethereum to see how it reacts to this rectangle pattern currently forming in the 4-hour timeframe.
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