Table of Contents
In our previous Ethereum analysis Urgent! The ETH Bulls Are Holding On To This Key Zone. But For How Long? we identified the $1,800 key support in the 4-hour timeframe and warned our readers of a possible range in price before the sell-off finally continues.
Well, that price prediction is playing out exactly right now! And this ranging market is creating a possibility for us to see a Head and shoulders pattern form in the coming days.
In this Ethereum analysis, we will be breaking down what this Head and shoulders pattern means for Ethereum and the key levels we are currently watching.
To trade ETH with leverage, sign-up to Bybit right now! Bybit’s BIGGEST Bonus Campaign is now live! You can get up to a $30,000 Bonus when you fund your Bybit account with our Bybit link
ETH Head and Shoulders Pattern
The Head and Shoulders Pattern is a very unique chart pattern used by professionals to spot a change/continuation in the trend.
The image above is what a completed Head and Shoulder pattern should look like. And when you compare that image with the current price action in the Ethereum 4-hour timeframe, we see a lot of similarities.
However, this Head and Shoulders Pattern is still yet not confirmed. We still need to see the Right-shoulder get formed. So in the coming days, we will be keeping a close eye on this pattern as it develops.
Final Verdict!
The Ethereum price is showing signs of weakness. Right now, we are seeing a Head and Shoulders Pattern form in the ETH 4-hour timeframe.
This pattern is a bearish indication for the ETH price. However, this pattern is still yet not completed, we still need to see the Right shoulder form and then for the Altcoin price to break below the Necklne support.
So for now, we stand aside and continue to watch this key pattern develop.
How to Trade Bitcoin (BTC)?
To understand the basics of Bitcoin trading, you can read our How To Trade Bitcoin Guide. It can prove helpful for traders who are just getting started with Bitcoin trading. You can also check out our list of top Bitcoin Exchanges To Trade With.
PrimeXBT Covesting: Trade Hassel Free
Sign-up on PrimeXBT today to trade Bitcoin hassle-free. You can copy experienced traders and access hundreds of different strategies on the platform! Don’t forget to claim your 25% bonus by using the promo code “bitcoinsensus50” when you sign-up with our link PrimeXBT Covesting
