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In a previous Ethereum analysis Must Read! Potential Head and Shoulders Pattern Forming on ETH! we analyzed the bearish scenario for Ethereum and warned our readers of the possible Head and Shoulders Pattern that was forming in the 4-hour timeframe.
This Head and Shoulders Pattern is a unique price pattern used by professional traders to spot market reversals. And if completed could easily mean a more than -15% dump in the value of Ethereum in the coming days.
Well, that pattern is still valid and we might be getting ready to make the final move that confirm the beginning of the sell-off for Ethereum.
In this Ethereum analysis, we will be talking about the key levels we are currently watching as well as what we expect to happen soon!
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ETH Bearish Price Scenario!
The Bearish pattern we are currently tracking is the Head and Shoulders Pattern currently forming in the 4-hour timeframe.
The image above is what this key pattern looks like once it is completed. And in the coming days, we expect to see a similar price action like this play out.
So for now, we are still monitoring the development of this key pattern to see if the bears are really ready to push the Altcoin price lower.
Key Levels To Watch For!
The most important key level for Ethereum right now is the $1,668 support zone. This price level also serve as the Neckline Support of the Head and Shoulders Pattern.
So for the bearish sell-off to be confirmed by Ethereum, we need to see the Altcoin price break through and close below this $1,668 key support zone in the 4-hour timeframe.
Once the bearish break down happens, we can expect to see more push lower play out for Ethereum as more sellers step into the market.
Final Verdict!
The Ethereum price is right now forming a Head and Shoulders Pattern in the 4-hour timeframe. If this key pattern plays out, there is a very high probability that we might see am more than -15% dump in the value of Ethereum in the coming days.
But for this bearish prediction to play out, we need to see the ETH price break through and close below the $1,668 key support level in the 4-hour timeframe.
Until this bearish break down occurs, we will continue to stand aside and wait for this bearish confirmation to play out!
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