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The crypto market is finally recovering from the massive sell-off we saw play out across the board yesterday on December 28th, 2021! Warning: Crypto Flash Crash! Is The ETH Rally Over?
This sell-off saw major players like Bitcoin and Ethereum make big bearish moves that lasted hours with massive bearish volumes coming into the market. But how long do we expect these moves to last and is Ethereum now bearish?
In this Ethereum analysis, we will be talking about why we believe this ETH sell-off might not last long and what key pattern we are currently watching on the Ethereum 4-hour timeframe.
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Ethereum Weak Sell-Off!
The Ethereum price sell-off has been weak, slow, and very choppy! This is a clear sign that the ETH bears are struggling to cover grounds and the move lower might not last long!
This bearish move is also contained within parallel lines that formes a Descending Channel Pattern on the 4-hour timeframe, giving us a clear picture of what exactly the ETH price might be doing and the key levels to watch for in the coming days.
Ethereum Descending Channel Pattern!
The Descending channel pattern offers high-quality key levels to watch for on the Ethereum timeframe. If the Ethereum Altcoin continues trading within this channel, we can expect to see the price find support and resistance within this channel as it continues pushing down.
However, a descending channel also indicates a price retracement from the main trend, with the main trend on this occasion being the bullish move to the upside!
If this proves to be true, there is a very high probability that we might see a price reversal in the Ethereum 4-hour price chart soon! This reversal will lead to a price breakout from the descending channel and surge higher.
Final Verdict!
The Ethereum sell-off has been slow, and very choppy, showing signs that the ETH bears might be weak and unable to hold the Altcoin lower for long!
The key pattern we are watching to indicate the end of this sell-off is the descending channel pattern on the 4-hour timeframe. We want to see the Altcoin price break through this pattern and begin heading higher in the coming days.
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