The Ethereum price has been selling off for weeks now, but we are currently approaching a key support level on the 4-hour timeframe. This $2,720 Ethereum key support could be the perfect level we might need to see the Altcoin bounce and rally back up in the coming days.
We went into more details about this $2,720 key level and the potential bullish move in our previous Ethereum analysis Ethereum Blood Bath Continues. Watch This Key Support
However, right now we may now have a more specific way to time the end of that bearish sell-off in Ethereum soon! And the pattern we are watching for is the Descending Channel Pattern currently forming on the 1-hour timeframe.
This pattern offers us key levels to watch and in this Ethereum analysis, we will be breaking down what these key levels are and what we are watching for in the ETH price in the coming days.
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Ethereum Descending Channel Pattern
This Descending Channel pattern offers us key levels to watch as the ETH price is selling off. We want to see the price continue to respect this pattern as it heads down to our $2,720 key support.
However, this pattern also helps us know the exact time the ETH sell-off might be over. And the key level to watch for that bullish indication is the Resistance channel of the Descending channel pattern currently forming on the ETH 1-hour timeframe
We can see the ETH price has respected this level over and over again as it sold off.
This points to the increased value of this price region for the ETH bears. However, a price break above it could signify a change in the ETH trend dynamics.
Timing The End Of The ETH Sell-off
A price break above the resistance channel of the Descending channel pattern could mean the end of Ethereum’s bearish move to the downside and a potential rally in the coming days.
This makes this pattern a key chart pattern the Ethereum bulls need to keep an eye on in the coming days.
Until a bullish breakout like what we have illustrated above happens, we might continue to trend lower within the descending channel pattern in the coming days.
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