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In our previous analysis, Ethereum Bearish Pattern Invalidated! What Now? Is It Time To Buy? we talked about the Ethereum Expanding Channel Pattern
This pattern was forming on the 1-hour timeframe and offered us key levels that could serve as support and resistance for the ETH price in the coming days.
Well, that prediction is playing out as we speak! The Ethereum price just bounced off the support channel for the Expanding channel pattern and is currently heading higher.
But does this mean the ETH sell-off is over, or should we expect another sell-off soon? Continue reading to find out the key level the Ethereum price must break through to become bullish again.
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Ethereum Still Not Out Of The Woods Yet!
The Ethereum price might be surging higher right now, but it is important to note that Ethereum is still trading within this Expanding Channel pattern on the 1-hour timeframe.
The key level to watch is the Channel Resistance just up ahead. As far as the Ethereum price continues to trade below this key resistance, there is a very high probability that we might just see a price sell-off back down in the coming days.
When To Expect A Price BreakOut From This Pattern?
We can’t say for sure when this Ethereum price breakout from this Expanding Channel Pattern might happen, but we do know the requirements to classify a price move as a bullish or bearish breakout from this pattern.
That kind of price move is yet to happen for the Ethereum price.
For the bullish breakout, we want to see the Ethereum price breakthrough and close above that Resistance Channel of the pattern on the 1-hour timeframe.
A breakout like this would look like the image below and would be a clear indication that the ranging phase of Ethereum has ended, we can now expect to see a massive move to the upside.
Unless a bullish breakout like this occurs, the Ethereum price might not be ready to move higher just yet!
Final Verdict!
Ethereum is still yet not bullish on the 1-hour timeframe. The price is currently trading in an Expanding Channel Pattern.
This pattern plays out only during a ranging market, and until Ethereum can break out of this pattern either to the upside or downside, there is a very high probability that we might just continue to range and trade sideways in the coming days.
The key level to watch for the bullish breakout is the Resistance Channel of the pattern. Can the ETH bulls breakthrough this key resistance?
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