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The bear market might not be over for Ethereum just yet! The Altcoin price is still showing massive signs of weakness and right now we are seeing glimpses of a potential price reversal to come!
The key pattern we are watching is the Head and Shoulder pattern currently playing out in the 1-hour timeframe. This pattern is a high-quality reversal pattern which indicates there is a very high probability for us to see the ETH price resume its bearish trend lower in the coming days.
In this Ethereum analysis, we will be breaking down this key pattern as well as the levels we are watching and how we plan to take advantage of this coming move.
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Ethereum Head and Shoulders Pattern
The Head and Shoulders Pattern is a high-quality reversal pattern that helps us spot when a bullish trend is about to end. And the image above is a great example of the after effect of price once that pattern forms.
For Ethereum, we are still waiting for our bearish confirmation to play out. This bearish confirmation is the break of the Neckline Support in the 1-hour timeframe.
As far as the price continues to trade above this key support, we will need to stand aside and wait for that confirmation to play out.
Bearish Target For Ethereum
Once we get our bearish confirmation (price breaking below the Neckline Support) there is a very high probability that we might see a 20% drop in the value of Ethereum.
A bearish drop like this would push the Altcoin price back down to the $774 price region in the coming days. But for this bearish prediction to play out, the Ethereum price must first breakthrough and close below the Neckline support in the 1-hour timeframe.
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