For weeks, we have been tracking the Ascending Channel pattern Ethereum has been trading in.
This pattern was so important in understanding the ETH price action because it offered us key support and resistance levels to watch for the Ethereum price to head to and bounce from. However, one of these levels has just been broken in the daily timeframe.
The Ethereum price is currently trading below the base support of this Ascending Channel Pattern and it looks like we might be seeing more price sell-off to the downside in the coming days.
In this Ethereum analysis, we will be talking about the major daily support the ETH price needs to break through to confirm the start of this bearish move lower and what might happen to Ethereum if this key support holds.
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The Last Key Support For Ethereum
Before the Ethereum sell-off can be confirmed, the ETH price must break through and close below one last key support in the Daily timeframe.
This support is the $2,445 horizontal support and we believe there is a very high probability that the ETH bulls will defend this key level at all costs.
Bullish Price Scenario! Price Stays Above $2,445
If the Ethereum bears fail to drive the ETH prices below this $2,445 key support, there is a very high probability that we might see a bounce and a bullish rally back up from this key region.
This bounce from this $2,445 key support can easily change the market sentiment and bring in more buyers for Ethereum come next week.
This potential for a bullish price bounce in Ethereum increases the importance for us to wait for a clear price break and close below this $2,445 key support region first before looking to enter any sell trades on the Altcoin.
Bearish Price Scenario! Price Closes Below $2,445
For Ethereum bearish price scenario, we want to see the ETH price breakthrough and close below the $2,445 key support in the daily timeframe.
A bearish breakdown like this would easily convert that $2,445 from previous support to new resistance for the price, increasing the potential for more sellers to come into the market and push ETH lower in the coming days.
Ethereum is trading at a critical level in the Daily timeframe. The key level to watch out for is the $2,445 horizontal price support.
If this key support holds, there is a very high probability that we might see a price bounce and rally back up in the coming days.
However, if this $2,445 support fails Ethereum might sell off back down to the $1,715 key level in the coming days.
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