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The Ethereum price is currently coiling up and building momentum for a major move soon! And in this Altcoin analysis, we will be talking about the pattern this price action is forming.
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The Converging Triangle Pattern
We can clearly see the price gradually squeezing and ranging slower on the 4-hour timeframe. This is a key factor that points to the momentum building up in anticipation of a violent move either to the upside or downside in the coming days.
But since Ethereum is yet to recover from its massive sell-off, we are going to only look to take a price breakout to the downside.
The Key Level To Watch For
The key level we are watching for in the coming days is the base channel of the converging triangle. As far as the price continues to trade within this channel, we can expect Ethereum to continue trading sideways.
However, for our bearish price scenario, we want to see the Bitcoin price clearly break and close below the support channel to confirm the start of the Etheeum breakout to the downside.
Final Verdict!
Ethereum is still in a ranging market with the price currently bouncing around in a converging triangle pattern. We will remain neutral as far as Ethereum continues to trade within this pattern.
A price break below the support channel confirms our sell bias on Ethereum and points to a more bearish trend for the Ethereum price in the coming days.
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Easy Steps From Beginner To Pro Crypto Trader
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