The crypto market today saw a massive sell-off in price across the board as news came out that the SEC was going after Binance and its CEO CZ for violating the U.S. derivatives rules, particularly related to the provision of trading services for “securities” like BNB and SOL.
However, for this ETH TA, we will be taking a close look at how the Ethereum price was affected by this news and the new key levels we will be keeping our eye on in the chart.
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In our previous Ethereum analysis Decision Time! Will This Level Hold Or Not?, we talked about the major resistance channel the ETH price was currently testing in the 4-hour timeframe.
We also warned our readers that if this channel resistance holds, this could mean that the ETH price might be finally ready to resume its sell-off.
And the key pattern that was supporting this bearish bias on Ethereum is the Mini-bearish Flag pattern we were tracking in the 4-hour timeframe.
Side Note: This ETH mini-bearish flag pattern also supports our overall bearish view on Ethereum. On the Higher timeframe, we are still tracking a massive Head and Shoulders pattern in play right now.
ETH Price Sells Off Aggressively on News Of SEC Binance Law Suit. What now? Watch this price prediction in the 4-hour timeframe
The Ethereum price is selling off aggressively! However, there is still a key support we need to see broken for us to confirm that this is really the start of the sell-off in price.
And that key support is the $1,755 key support level in the 4-hour timeframe.
We have mentioned this $1,755 key support over and over again in previous analyses and have always warned our readers that we need to see this key support give way first if we want to see the Ethereum sell-off continue.
For now, this key level is still holding strong, so we will continue to stand aside and wait for this bearish confirmation to play out in the 4-hour timeframe.
Final Verdict!
We are still very bearish on Ethereum and believe the Altcoin sell-off is still far from over! However, the key pattern we are watching right now to confirm this bearish bias on Ethereum is the ETH min-flag pattern in the 4-hour timeframe.
For this bearish pattern to be confirmed, we need to see the Altcoin price break through and close below the $1,755 key support level first.
Until this breakdown happens, we will continue to stand aside and wait for our bearish confirmation.
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