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In our previous Ethereum analysis, Ethereum Inverse Head and Shoulders Pattern Indicates Bullish Move Ahead!, we identified a key bullish reversal pattern that was playing out in the 1-hour timeframe and what it meant for prices.
We also broke down how this pattern could signal the start of a much larger rally for the ETH price, and the bullish confirmation we were waiting to see play out.
Well, fast forward 24 hours later, and this Inverse head and shoulders pattern is still playing out exactly as we predicted. However, we just have one thing left for the prices to do to confirm the start of the rally higher. And that last thing is a bullish breakout above the Neckline Resistance in the 1-hour timeframe.
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Why Is This Neckline So Important?
The Neckline resistance is very important for the bulls because this is where the Ethereum bears are currently sitting. And as far as the ETH price continues to trade below this key resistance, there is a very high probability that we might just see more sellers come in and push the Altcoin prices lower in the coming days.
This is why it is important for the bulls to take out this key resistance if they want to see the Ethereum price keep on pushing higher in the coming days!
Final Verdict!
The Ethereum price is currently testing a key resistance in the 1-hour timeframe. This Neckline region is the last level the bulls need to break through to confirm the completion of the inverse head and shoulders pattern the price is currently forming in the 1-hour timeframe.
Until this resistance is broken, we will stand aside and wait for the Ethereum big buyers to come in and make a move.
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