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In our previous Ethereum analysis Urgent! ETH Invalidation Point For This Bearish Scenario, we talked about the bearish Head and Shoulders Pattern that was currently playing out in the 4-hour timeframe, as well as the most important resistance region that must be respected for this bearish prediction to play out.
Well, this bearish pattern is still valid. But right now, we are anticipating a final push-up in price before the sell-off begins.
In this Ethereum analysis, we will be breaking down why we believe this mini-rally is about to happen as well as the key pattern we are currently watching!
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What Is Happening Right Now In The ETH Market?
The ETH price has been ranging for days, and this ranging market began after the ETH price formed the right shoulder of the Head and Shoulders Pattern.
This sideways market has created a Mini-Triangle Pattern in the lower timeframe. And this key pattern might already be getting set to play out.
If this mini-triangle pattern plays out, there is a very high probability that we might see one last rally in the ETH price before the bigger Head and Shoulders Pattern Sell-off begins.
ETH Triangle Pattern
The ETH price is still trading in the Triangle Pattern. However, we believe the price might be setting up to make a massive move soon!
Our price target for this Triangle breakout is the $1,973 price region. This is a potential +4% surge in the value of Ethereum, and this rally might play out on any day now.
As for the invalidation point for this Triangle Pattern, we do not want to see the ETH price trade below the $1,862 key support in the 1-hour timeframe.
A price break below this $1,862 key support invalidates this bullish prediction in Ethereum and indicates a possibility for us to see a sell-off instead.
Final Verdict!
We are still overall very bearish on Ethereum and we believe that the Head and Shoulders Pattern is setting up to make a move soon!
However, there is a very high probability that we might still see one last rally in price to complete this Head and Shoulders Pattern before the sell-off can begin.
Well, that final rally is getting ready to happen soon, and there is a very high probability that the Mini-Triangle Pattern currently forming in the 1-hour timeframe can give us a better picture of what to expect in the coming days.
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