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We talked about this Ethereum $1,233 key resistance zone in our previous TA Ethereum Price Pushing Up! But For How Long?. We warned our readers that this zone might be of high importance because we expect to see sellers pour into the market from that key level.
Well right now, Ethereum is much closer to this key resistance zone, and we are right now seeing a key Reversal Pattern that might help us predict exactly when this sell-off would start.
We will be talking in-depth about this Ascending Channel pattern as well as the key levels we are currently watching in the 1-hour timeframe.
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Ethereum Ascending Channel Pattern
The Ascending Channel Pattern is so unique because it helps us spot the potential reversal in the price of an asset. The image above is what a completed Ascending Channel pattern should look like.
This simply means in the coming days we expect to see the Ethereum price begin to break lower and push to the downside to complete the Ascending Channel Pattern.
If this bearish prediction plays out, there is a very high probability for us to see the Ethereum price sell-off back down to $1,073 lows in the coming days.
ETH Key Levels
The key level we are currently keeping our eyes on is the $1,238 minor support in the 1-hour timeframe.
This level is so important because the Ethereum price would have to break through and close below it for us to get our confirmation that the Ethereum sell-off has finally started.
If the Ethereum price breaks through and closes below this $1,238 minor support, there is a high probability that we might see a sharp move to the downside as more sellers join the movement down.
Final Verdict!
We are still bearish on Ethereum and believe the ETH price is setting up for a short-term sell-off. The key pattern supporting this bearish bias is the Ascending Channel pattern.
This pattern is currently playing out in the Ethereum 1-hour timeframe. We believe that if the price breaks and closes below the $1,238 minor support, that would be our bearish signal to sell Ethereum.
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