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In our previous Ethereum analysis Ethereum Price Crashing Back Down! Is This The End Of The ETH Rally? we talked about the bullish price scenarios for Ethereum as well as the key pattern and levels we were watching for a bullish breakout in Ethereum.
So if you are feeling bullish about Ethereum and believe there is a very high probability for us to break out to the upside, that previous ETH TA might be the best for you.
However, for this Ethereum analysis, we will be taking a look at the potential bearish scenarios currently developing right now in Ethereum. And there is one key bearish scenario that stands out from the rest.
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Ethereum Descending Triangle Pattern
The Descending Triangle Pattern is a bearish continuation pattern that speaks of a possibility for us to see more selling pressure to the downside for Ethereum.
A typical example of this Descending Triangle pattern in the image above. We can see clear similarities between this image and the current price action playing out in the ETH 1-hour timeframe.
However, the pattern is still yet to be completed. And in the section below we will be talking about what we are waiting for to happen to confirm the start of this Ethereum sell-off.
What Next For Ethereum?
Well, right now the Ethereum Descending Triangle Pattern is still forming, this means we need to stand aside and wait until it gets completed and we get the confirmation that the price is about to resume its move lower.
And that bearish confirmation for Ethereum will be the price break and close below the Flat lower trend line which is the ETH $1,684 key support level in the 1-hour timeframe.
This $1,684 support is very important because it also serves as weekly support that has been holding up the Ethereum prices since last year.
A price break below this support will give us the confirmation we need to look for selling opportunities in Ethereum for the short term.
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