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In our previous Ethereum analysis Is ETH Really Bullish? Watch Before You Leap!, we warned our readers of the bigger Head and Shoulders Pattern that was in play in the 4-hour timeframe and how the current price rally in Ethereum might just be a bull trap.
Well today, we saw the sellers jump back into the market and push the Altcoin price back below this $2,020 resistance region. This indicates that Ethereum is still very bearish and there is a very high probability for us to see the push lower resume.
In this Ethereum analysis, we will be updating you on what the Altcoin price is currently doing.
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Has The Ethereum Sell Off Resumed?
Let’s get a few things straight:
- We are still bearish on Ethereum
- We still believe the Head and Shoulders Pattern is in play.
However, the ETH price has been in a bullish retracement for a few weeks now. But sooner or later, this bullish retracement will end and the Ethereum sell-off will resume.
The key level that needs to be broken to confirm the resumption of this bearish sell-off in Ethereum is the $1,755 key support.
If the ETH bears can push the Ethereum price below this $1,755 key support, this would confirm the ranging market for Ethereum and the resumption of the Altcoin sell-off.
Final Verdict!
We are still very bearish on Ethereum and will remain bearish as far as the Ethereum Head and Shoulders pattern continues to remain valid.
We believe that if the Altcoin price can break through and close below the $1,755 key support, there is a very high probability that we see a -15% dump in the value of Ethereum play out.
So in the coming days, we will be keeping a close eye on this key support to see how the price reacts to it.
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