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While a lot of crypto analysts have been talking about the massive converging triangle pattern forming on the ETH 4-hour timeframe, no one has actually taken a step further to actually breakdown the internal structure of this triangle pattern or explain to readers just how bad things could get very soon!
In this Ethereum analysis, we will be doing just that and explaining to you why we think the ranging market is about to be over and why the ETH price might make a massive -40% move to the downside very soon!
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Understanding The Converging Triangle Pattern!
The converging triangle pattern is actually used by professional traders as a continuation pattern! A typical example of this pattern in play is the image above. Once it forms, we expect the price to range a bit before resuming the trend.
But one thing a lot of traders don’t know is that:
The triangle pattern is so unique to traders because it only forms when a trend is about to end.
For Ethereum, this converging triangle pattern forming right now only implies that the Ethereum bearish trend will be coming to an end very soon! But before it does we expect to see the last leg down.
That last leg down will be completed once ETH breaks through the triangle pattern and moves lower.
And we believe this move down is about to happen soon!
Understanding The Internal Structure Of The Triangle Pattern
The next question a lot of our readers will ask is “why do we think the converging triangle pattern has been completed and why should we expect a sell-off to begin now?”
Well to understand that you need to know about the internal structure of a triangle pattern and how it is made up.
The triangle pattern is made up of 5-internal smaller waves that trade sideways before continuing the move with the trend. And the image above is what these 5-internal waves typically look like before the price breakout.
When you look at the Ethereum price we see this exact price structure already playing out. Below we provide you with the image of the current price action on the ETH 4-hour timeframe with these internal waves already labeled for context.
This only means that Ethereum is getting ready to dump and dump hard in the coming days. And you can expect us to keep you up to date as this bearish price action and prediction develops.
ETH Bearish Targets!
The key level to watch is the $1,714 key support region on the 4-hour timeframe.
In the coming days, we expect to see this converging triangle break down push the Ethereum price back to the $1,714 key support region before the sell-off finally ends.
And once this sell-off ends, there is a very high probability that the general bearish nature of Ethereum will end too. This would lead to us seeing the Altcoin price begin to rally back up massively again.
How We Plan To Take Advantage Of This Move Lower!
For a full breakdown of how we plan to take advantage of this potential move lower, the best entry levels, and the key regions we are currently watching, check out our previous analysis on Ethereum Ethereum Price Prediction: Watch This Bearish Trade Setup!
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