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For weeks now, we have been tracking the massive Head and Shoulders Pattern playing out in the 4-hour timeframe. And despite the long sideways market we have been experiencing, this bearish pattern is still very valid.
In this Ethereum analysis, we will be updating you on what the ETH price is doing right now as well as the key resistance the ETH bears must defend for this bearish prediction to remain valid.
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ETH Head and Shoulders Pattern
While a lot of analysts might already be screaming bullish, we over here are still a bit cautious about this price rally currently playing out.
From the image above, we can see clearly that the ETH Head and Shoulders Pattern is still in play! Jumping in for a buy at these levels could be a risky trade because there is still a very high probability that this price rally might just be a trap.
If this bullish rally ends up being a trap, there is a very high probability that we might see a massive sell-off play out in the coming days.
Key level To Watch Out For!
The most important level for Ethereum right now is the $2,020 key resistance level in the 4-hour timeframe. This is the price level the ETH price needs to break through in order to switch from a bearish trend to a bullish trend.
As far as the ETH price continues to trade below this $2,020 key resistance level in the 4-hour timeframe, we will remain bearish on the Altcoin.
This $2,020 key resistance level also serves as the invalidation point for the Head and Shoulders Pattern we are currently tracking.
So in the coming days, we will be keeping a close eye on this key level to see if it will continue to hold strong.
Final Verdict!
Despite the rally we are seeing play out, we are still bearish on Ethereum for now. The key pattern still supporting this bearish bias is the Head and Shoulders Pattern playing out in the 4-hour timeframe.
As far as this Head and Shoulder Pattern remains valid, there is still a fighting chance for the Ethereum bears to take back control of the market.
If you are more bullish on Ethereum, check out our TA What The ETH Bulls Must Do To Stop Any More Sell-Off
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