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In our previous Ethereum analysis Ethereum Price Prediction Daily (19-Oct): ETH Sell-Off Intensifies! Watch This Next Support Level, we warned our readers about the $1,262 minor support and how this key level needs to be broken for the ETH bears to keep on pushing the Altcoin price lower.
Well, Ethereum has tested this $1,262 key level and failed to break below it in the 15 minutes timeframe. However, this price failure created a key bearish pattern and in this Ethereum analysis, we will be talking about this Head and Shoulders Pattern currently forming and what it means for Ethereum in the coming days.
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Ethereum Bearish Prediction!
The Ethereum price bounced from the $1,262 key level in the 15 minutes timeframe has created a potential Head and Shoulders pattern.
This pattern is a bearish indicator for Ethereum and it signifies that the Altcoin might continue to sell off lower in the coming days. However, this pattern is not complete yet!
For us to have a complete Head and Shoulders pattern, the Ethereum price will need to break down and close below the $1,262 key support which also stands as the Neckline Support of the pattern.
Once the Ethereum price breaks below this support, we have our bearish confirmation that the pattern is completed and the ETH price is ready to sell off another -6% in the coming days.
How Does This Tie In With The Over All Outlook
The bigger picture for Ethereum is that the price is still ranging within a massive channel pattern in the higher timeframe. The Ethereum price earlier this week tested the resistance channel of this pattern and began to sell off.
This Head and Shoulders Pattern in the Lower timeframe only confirms that bearish bias and offers us a pattern to trade this move lower with
So in the coming days, we will be keeping a close eye on this $1,262 minor support in the 15 minutes timeframe to see if the bears can break through it and continue pushing the Altcoin price lower in the coming days.
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