In our previous Ethereum analysis Ethereum Bearish Target Almost Smashed! What Next?, we talked about the ascending channel key pattern playing out in the 4-hour timeframe and how the base channel of this key pattern could become a major support for the Ethereum price in the coming days.
Well, that prediction played out exactly. The Ethereum price crashed to this key support before finding support, bouncing, and rallying higher. But how long will this rally last?
In this Ethereum analysis, we will be talking about the key resistance we are currently watching and how it might affect the ETH price in the coming days.
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Ethereum Key Levels!
The first key resistance we are watching is the $3,686 horizontal resistance in the 1-hour timeframe. The last time Ethereum got to this level, we saw a massive crash in the ETH price. And this is not the first time it is happening either.
If this horizontal level continues to hold, we might see this bearish price action play out again in the coming days, potentially ending this ETH bullish rally even before it started.
However, if Ethereum manages to break through that key level. We have another key level just ahead. And that key level is the resistance channel from the ascending channel pattern playing out in the 4-hour timeframe.
Ethereum Ascending Channel Pattern
The Ethereum price is still trading within a larger ascending channel pattern in the 4-hour timeframe.
This pattern offers us key levels to watch and right now the Ethereum price just bounced from the base of the ascending channel and is heading to the resistance.
The Ethereum price is running into key resistance right now and how price reacts with these levels will have a direct effect on the direction the Ethereum trend would take in the coming days.
Can the Ethereum bulls break through these key resistance or should we expect to see this bullish rally come to a halt and reverse?
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