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In our previous Ethereum analysis, Ethereum Needs To Make A Major Decision Soon! we talked about how the Ethereum bearish market might be bottoming and the 4-hour key level that has been serving as major support for the ETH price since last year.
The big question from that analysis was “can the Ethereum bulls continue to respect this major support or will we see a break and sell-off soon in the price?”
Well as of today, the Ethereum bulls are fighting back to regain control of the Ethereum price action and maintain this uptrend. We are currently seeing a bullish price bounce and a higher low bullish price structure from this key area on the 4-hour timeframe.
Will this be a start of a bigger bullish move higher for Ethereum? To better answer that question, we will be going lower in the timeframe to the Ethereum 1-hour chart.
In this Ethereum 1-hour timeframe, we see a great bullish reversal pattern currently forming.
This reversal pattern will help us take advantage of this current bullish bounce in the Ethereum price and offer us key levels to watch for in the coming days.
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Ethereum Bullish Reversal Pattern!
On the 1-hour timeframe, the Ethereum price is currently forming an Inverse Head and Shoulder Pattern. This is a high-quality bullish reversal pattern used by trading experts all across the world.
The left shoulder of the pattern has fully developed and right now, we are seeing the right shoulder paying out.
Once this right shoulder is completed, the pattern will be ready to be traded to the upside in the coming days.
Entries, Confirmation, and Key Levels!
For the best trade entry for this pattern, we want to see the ETH price breakthrough and close above the Neckline resistance on the 1-hour timeframe.
A bullish break out like this would be the perfect indication that the Ethereum price is ready to begin its move higher.
This makes the Neckline region of the inverse head and shoulder pattern the most important key level to watch for this bullish prediction. Until this Neckline resistance is broken, we will stand aside and wait for that bullish confirmation in price.
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