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On a 4-hour timeframe, the Ethereum price is currently trading in descending channel pattern. This pattern offers us key levels to watch for and expect the ETH price to find support and resistance from.
And right now, it seems Ethereum might be getting ready to test the base channel of this pattern in the coming days. If this plays out, we can expect to see a massive 10% drop in Ethereum in the coming days!
In this Ethereum analysis, we will be breaking down how we plan to take advantage of this coming sell-off and the key pattern we are currently keeping an eye on in the lower timeframe.
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How To Take Advantage Of This Coming Sell-Off
To take advantage of this potential sell-off on Ethereum, we are going lower to the 1-hour timeframe. In this timeframe, we are currently seeing a converging pattern play out.
And since we are trending lower, we will only be looking for a breakout to the downside in the coming days. A bearish breakout like this would be the perfect indication we need to confirm the start of the ETH sell-off down to the base of descending channel pattern we talked about earlier in the article.
Price Confirmation To Watch For!
For the price confirmation, we want to see the Ethereum price break down below the $3,623 key support on the 1-hour timeframe. Ethereum already tried to break through on 2-previous occasions and failed, showing signs of bullish support around that area.
This makes the $3,623 the perfect level to watch for a bearish indication that the Ethereum sell-off as started on the 1-hour timeframe!
Once Ethereum breaks down and stays below this key level on the 1-hour timeframe, we can expect to see the sell-off follow through in the coming days. But until this price breakdown occurs, Ethereum might just continue to range and trade sideways.
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