Table of Contents
In our previous Ethereum analysis Warning: This Pattern Confluence Points To Why Ethereum Could Still Sell-Off. we warned our readers of the multiple bearish pattern confluence that was forming on the ETH 1-hour timeframe.
This bearish confluence includes the formation of a Bearish Flag Pattern within a larger channel pattern.
Well as we speak, that bearish prediction is already playing out. The Ethereum price just broke below the Flag Pattern Support and is looking set to sell off massively.
In this Ethereum analysis, we will be talking about the key levels we are currently watching as well as what the ETH price must do for this bearish move to remain valid.
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Ethereum Bearish Flag Pattern
The Bearish Flag Pattern is a simple-to-understand continuation chart pattern that indicates the price of a particular asset might be getting ready to continue moving lower once the ranging period/sideways trading is over.
Right now, Ethereum just broke below the base support of that Flag pattern range in the 1-hour timeframe. This price break and retest is a great indication that Ethereum might just be ready to continue its bearish trend in the coming days.
The Key Level To Watch
For this bearish move to play out, we need to see this 1-hour previous support begin to act as key resistance against the Ethereum price chart.
If this resistance holds, there is a very high probability that we might see more bearish momentum begin to push the ETH price lower in the coming days.
As for our next key target, we are watching the base support of the larger Channel Pattern the Ethereum price has been trading in for weeks now.
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