Table of Contents
The Ethereum price has been trading in a converging triangle pattern for the past few months now.
This pattern is playing out on the 4-hour timeframe and is really unique to the Ethereum price because it has provided us with a major resistance the ETH bulls have failed to break on numerous occasions.
And right now, the Ethereum price is trading around this key resistance channel again. Should we expect to see the price crash back down like we have seen before on numerous occasions or can the bulls stand up and fight now?
In this Ethereum analysis, we will be talking about the bullish outlook for Ethereum and what the ETH price must do to enter into the bullish teritroy.
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Ethereum Key Levels To Watch For!
There are two key levels to watch for right now on the Etherum chart. These two key levels creates what we call a Kill Zone and in the sections below we will be breaking down the various components that makes up this kill zone for our readers.
1) Resistance Channel For The Converging Triangle Pattern
The first key level to watch out for on the Ethereum price chart is the resistance channel of the converging triangle pattern currently playing out on the 4-hour timeframe.
This resistance level is the first key level the Ethereum bulls must break to even get the chance to rally any further. Unless broken, any dream of a bullish rally in the Ethereum price will die down before it even starts.
2) $3,280 Horizontal Resistance
The second key level to watch is the $3,280 horizontal resistance on the 4-hour timeframe.
While it is possible for the ETH price to break through the converging triangle pattern, there is a high chance we might face similar resitance at this $3,280 resistance level too.
This makes it very important for the Ethereum price not only to break through the converging triangle pattern, but also through the $3,280 horizontal key level before we can become bullish on the price.
Final Verdict!
These two key resistance levels make up what we termed the Kill Zone. This zone spans from the $3,026 to the $3,280 price region. And unless the ETH price can break through this kill zone, there is a very high probability that we might just see Ethereum sell-off in the coming days.
So the question now becomes,
Can the ETH bulls push the price above this kill zone or will we see a bullish exhastion and price reversal in the coming days?
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Read More!
If you are more bearish biased on Ethereum and believe there is a higher chance for us to see a sell-off, Check out our ETH bearish analysis Ethereum is Finally Trading In The Kill Zone! Get Ready
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