We also identified the mini-bearish Flag Pattern that was forming within that range. This Flag Pattern helps us understand what the ETH price is doing in this ranging phase and what we can expect in the coming days.
Well, the mini-flag pattern we spotted was pointing to a possible sell-off in the coming days. This plays out well with our overall bearish bias on the Ethereum price right now.
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Decision Time! Will This Level Hold Or Not? Watch this key level in the 4-hour timeframe
Right now, the Ethereum price is still forming the flag pattern. However, the price is testing the channel resistance of this key pattern and we need to see this level hold.
If the bears can defend this channel resistance, there is a very high probability we might see the ETH sell-off begin in the coming days. And this bearish Flag Pattern gives us a unique way to take advantage of this move lower.
The image below is what a completed bearish Flag pattern looks like. And we want to see this kind of price action play out in Ethereum.
Side Note: We are still tracking the much larger Head and Shoulders Pattern Playing out in the 4-hour timeframe.
This flag pattern is just a mini-pattern forming within that overall selling trend.
We are still bearish on Ethereum and believe the Altcoin might be getting ready to sell off. The key pattern we are tracking is the bearish Flag Pattern currently forming in the 4-hour timeframe.
For this pattern to remain valid, we need to see the ETH price respect the channel resistance. If this key resistance fails to hold, this invalidates this flag pattern.
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