The Ethereum price has been inching higher all through the weekend. This push-up is bringing Ethereum ever close to our invalidation level for the Head and Shoulders Pattern we identified in our previous analysis ETH Pumping Is The Sell-Off Over?
This Head and Shoulders pattern is currently playing out in the 15 minutes timeframe and is still very valid. It points to a potential bearish sell-off for Ethereum sooner or later, but for this pattern to remain valid, Ethereum must continue to trade below the $1,341 key resistance.
In this Ethereum analysis, we will be talking about this bearish price scenario and why we believe the ETH price is about to sell off.
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Ethereum Bearish Prediction!
The image above is what a typical Head and Shoulders Pattern looks like. When you compare that with what the Ethereum price currently looks like, we see a lot of similarities in structure.
We can clearly see the Left Shoulder, Right Shoulder, and the Head of the pattern. As far as the Ethereum price continues to trade below this Head at ($1,341) this bearish pattern will remain valid.
For the Ethereum price to break this bearish bias, we need to see the Altcoin break above that $1,341 key resistance region first.
What Does This Mean For Ethereum
It means this price pump we have been seeing play out all day is just temporary. Sooner or later we will see bearish pressure begin to re-enter the market and try to push the Altcoin lower.
However, this bearish bias can only remain valid if the ETH bears can defend the $1,341 key level in the 15 minutes timeframe. So in the coming days, we will be keeping a close eye on this level to see if it would continue to hold.
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