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In our previous Ethereum analysis Ethereum Bullish Reversal Pattern Still Playing Out! What Next? we talked about the Inverse Head and Shoulders Pattern that was forming in the 1-hour timeframe.
But while this pattern was amazing, it only gave us a potential trade setup for a bullish price scenario on the Ethereum price. This means if this inverse head and shoulder pattern failed to play out and the price sold off instead, we would have no way of taking advantage of the Ethereum price sell-off.
However, that has changed! Right now, the ranging Ethereum price is forming a converging triangle pattern on the 1-hour timeframe. And this pattern offers us a way to trade ETH either to the upside or downside, depending on how it breaks out!
In this Ethereum analysis, we will be talking in-depth about this converging triangle pattern as well as the key levels we are currently watching on the 1-hour timeframe.
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Ethereum Converging Triangle Pattern!
The converging triangle pattern is a high-quality pattern that forms when the price has been ranging for a bit. And we can see that ranging market playing out as we speak on the Ethereum 1-hour timeframe.
The price of the Altcoin has been bouncing in between the two channels of the triangle patterns for weeks now and might continue to do so until we see volume come back into the Ethereum price in the coming days.
BreakOut Coming Soon!
A ranging market is always followed by a massive price move either to the upside or downside. And with the converging triangle in play, it helps us understand exactly when this sideways movement ends and the Ethereum price starts to trend again.
Ethereum Bullish BreakOut
For the Ethereum bullish breakout, we want to see the Altcoin break through the resistance channel of the converging triangle pattern and continue to trade above the pattern on the 1-hour timeframe.
A bullish breakout like this would be the perfect confirmation we need to indicate the end of the sideways move for Ethereum and the resumption of the uptrend.
Ethereum Bearish BreakOut
For the Ethereum bearish breakout, we want to see the ETH price breakthrough the base channel of the converging triangle pattern on the 1-hour timeframe.
Once price breaks through this channel support, there is a very high probability that we might see ETH sell-off more steeply in the coming days.
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