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The Ethereum price is closing the day off strong with an almost 3% surge in value. However, this bullish rally might be coming to an end very soon!
Why? Well if you don’t know, then let me remind you that the Ethereum price has been trading and is still trading in a converging triangle pattern on the 1-hour timeframe.
This price surge we just witnessed today only pushes the ETH price closer to the upper resistance of this key pattern. And sooner or later, this resistance will come into play again as it has always done and push Ethereum back down.
In this Ethereum analysis, we will be breaking down how we do plan to take advantage of this coming sell-off in ETH and the key level we will be keeping an eye on.
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Ethereum Converging Triangle Pattern
The converging triangle pattern is a high-quality pattern used by professionals to track the market whenever it is in a ranging or sideways consolidation phase.
This ranging market phase is very visible on the Ethereum price chart! The Altcoin price has been trading sideways for months now, and this sideways motion in price can clearly be measured using the converging triangle pattern.
The pattern offers us key levels for price to go to and find support/resistance from.
And right now, the ETH price is heading to such a level and that level is the resistance channel of the converging triangle pattern.
Once it gets to that resistance we expect to see a bearish sell-off in price back down in the coming days/weeks.
Getting Ready For The ETH Sell-Off!
The key level we are watching is the horizontal resistance zone that spans from $3,026 to $3,280 ( identified in the image above with the green box) on the 1-hour timeframe.
We believe the Ethereum price will likely find resistance around this key zone and begin to sell back down in the coming days.
This gives us ample opportunity to get ready for the consolidation that might occur and ready ourselves to follow the price back down once the sell-off begins.
The Ethereum price move back down from this region is about a -17% decline in value for the Altcoin and has a very high probability of playing out in the coming days/weeks.
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