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In our previous Ethereum analysis Ethereum Getting Ready For A Massive Move! Decision Time, we talked about the coming breakout the Ethereum price was about to make and the key levels to watch out for!
Well, the Etherum price just broke through one of the key levels we mentioned in that analysis, pointing to a potential rally higher in the coming days.
However, the only problem with this bullish price breakout of the $2,743 key resistance level on the ETH 1-hour timeframe was that it occurred on a low and declining bullish volume.
And without the bullish volume to support this price rally, the ETH price can only go so far before finally encountering more bearish pressure and finally crashing back down!
What Does This Mean? It means that although the Ethereum price just broke through a key resistance level on the 1-hour timeframe and has continued creeping up higher all day, the Ethereum price sentiments are still bearish as more and more traders believe the Ethereum bearish decline is not over yet.
This means the current move higher we are witnessing on the Ethereum price chat might be a bull trap. With the probability for the Ethereum sell-off to resume once this move is over increasing daily.
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Updating The ETH Price Analysis. Watch This Pattern
Well if the Ethereum bulls are not willing to back this current move higher, this can only mean we are currently in a bearish retracement in price. And once this retracement is over there is a very high probability that the sell-off in Ethereum will continue.
The key pattern we think is playing out right now on the ETH price chart is an Ascending Channel Pattern currently visible from the Ethereum 1-hour timeframe.
ETH Ascending Channel Pattern
This pattern overs us key levels to watch for the Ethereum price to get to and find support from in the coming days.
It also helps us understand that Ethereum is not yet in any impulsive or price rallying phase, instead, we are gradually retracing higher bouncing in between these key channels offered to us by the ascending channel pattern.
but once the retracement is over, we can expect to see the ETH price likely resume its move lower again.
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