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In our previous Ethereum analysis, ETH Bullish Rally Continues For The 2nd Day! What Now? we warned our readers that the current rally we were seeing play out in the Ethereum price chart was driven purely by fundamental news!
These kinds of rallies do not last especially since the sentiment in the crypto market was still very bearish as the industry tries to heal from the massive fall of FTX.
Well, that rally has ended and we are seeing the ETH price sell off aggressively. Is this the start of the push lower or should we be expecting another price bounce soon?
In this Ethereum analysis, we will be breaking down the key levels we are currently watching as well as the most important support that must be broken to confirm the start of the ETH sell-off.
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As The Ethereum Sell-Off Started?
We are currently bearish on Ethereum, and the key pattern that is supporting this bearish bias is the Ascending Channel Pattern currently playing out in the 4-hour timeframe.
Ascending Channel patterns have a specific way of trading them.
For us to confirm the start of the bearish move lower, we need to see the Ethereum price break through and close below the $1,238 previous support in the 4-hour timeframe.
A price break below this key support creates a Lower-Low price structure that serves as a great indicator warning traders that the bears might be getting stronger.
Ethereum Bearish Prediction!
The key level we are currently watching is the $1,238 support. If the Ethereum price breaks below this 4-hour support, there is a very high probability that we might see more push to the downside in the coming days.
Our bearish target for this move is the $1,070 price level. This is a more than -13% dump in the value of Ethereum.
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