We have seen a series of price bounces on the Ethereum lower timeframe. However, all these mini price rallies have failed because the larger Ethereum picture is still bearish in nature.
For that larger trend to change, the Ethereum price must break through the Descending Channel Pattern it has been trading in on the 4-hour timeframe.
And this breakout is important because the Channel resistance of this pattern has over and over again served as a key level against any bullish rally in Ethereum.
Until this Descending Channel pattern is broken, Ethereum might just continue to struggle to push higher in the coming days.
In this Ethereum analysis, we will be talking in-depth about what this Descending Channel Pattern breakout might look like as well as the key levels we are currently watching.
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How Ethereum Can Become Bullish Again
The image above is a typical example of what a Descending Channel Pattern breakout looks like on a price chart. Only a breakout like this can allow the Ethereum bulls to come back into full control of the ETH market and push prices higher.
But that is yet to happen for Ethereum. Right now price is still respecting that Descending Channel pattern on the 4-hour timeframe and will remain bearish until we see a bullish breakout like the image below.
The Key Level To Watch For
The most important key level to watch out for is the $2,980 price region. This is the key level the Ethererum price must break through to enter into the bullish territory in the 4-hour timeframe.
And for now, this $2,980 key resistance is still holding strong. Until price breakthrough and closes above it, we will stand aside and wait for that bullish confirmation.
We believe the Ethereum bearish trend is coming to an end and the buyers are getting ready to come back in. However, we are still yet to get any bullish confirmation of this changing sentiment.
And the only bullish confirmation we need right now is a price break above that Descending Channel pattern 4-hour timeframe.
Until that happens we will stand aside and wait for our bullish confirmation.
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