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The Ethereum price has been selling off for weeks now, making a lot of traders wonder if ETH is now in a bearish trend and should we expect more sell-off soon.
In this Ethereum analysis, we will be breaking down why this ETH sell-off we are witnessing might just be a bullish retracement that might end at any time. And the key things you should be watching out for on the Ethereum price chat in the coming days.
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Is Ethereum Retracing or In A Bear Trend!
Prio to the sell-off we are seeing play out on the Ethereum price chart, the Altcoin was surging higher. This price surge was fast with little pull backs along the way.
That is how a trending market plays out. However, the ETH sell-off as been very slow with Ethereum barely moving down after weeks and weeks of price overlapping and trading around the same region.
This slow, sideways trading is a clear indication that we are not in a bear trend. This can only mean that Ethereum is currently in a bullish retracement with a very high probability for us to begin surging back up once this sideways movement ends!
How Can We Know When The Retracement Ends!
Right now, this retracement we are seeing play out is forming a decending channel pattern on the 1-hour timeframe. For the Ethereum sell-off to be over, we need to see the Altcoin price breakthrough and close above this channel pattern.
A bullish breakout like this would indicate the end of the Ethereum sell-off and the resumption of the bullish move higher in the coming days.
However, until that happens, Ethereum might continue to sell-off in this slow overlapping manner we have been witnessing for the past few weeks now. But that in no way indicate that the Ethereum price is now in a bearish trend.
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