Ethereum entered what appeared to be another bearish stage after not regaining a critical level. As all technologies are heading even further downside, they are currently at risk of Ethereum prices falling below $4,000. This is the level the Bulls have struggled over the past few months. Most of this is related to a seemingly simple formation, which is a head and shoulder pattern that indicates a cave after the pattern is completed.
This head and shoulder pattern has the meaning of Ethereum prices
Crypto analyst Meliketrader shared the chart on the TradingView website, showing the completed head and shoulder patterns on the Ethereum 4-Hour chart. The chart shows the pattern began to return in August, with the left shoulder heading towards the middle of the moon. The head appears near the end of August, and the right shoulder completes the layer in mid-September.
Interestingly, after completing the head and shoulder pattern on the four-hour chart, Ethereum prices experienced a big bearish candle and eventually took out the neckline. Once this is done, I’ve confirmed that Altcoin is at a more downside risk.
The neckline, which is between $4,200 and $4,400, holds the key here. Ethereum prices will retest this level once more, so what happens here will determine where the next price will go. If there is a rejection from here, the price of Ethereum would crash even further.
Such a crash from the neckline will have a price below $4,000 because there is not much demand there. Analysts place the targets at around $3,850, calling the range of $3,700-$3,900 during this period. “This level is also a natural magnet as it lines up with the last major resistance zone,” Merica Tradder said.
Another development is that RSI shows divergence near the head of the formation. Altcoin also fell into territory that was oversold at this point. This is a pointer that can slow down momentum at this point.
Hope for the bull
If Ethereum prices go bullish from here, the neckline breakouts should be successful at $4,320 and $4,400. If Altcoin can be confidently closed above this supply zone, analysts believe this will invalidate bearish head and shoulder papers.
You’ll probably see the price of Ethereum If this happens, especially considering it’s now, a significant bouncing Territories that are not oversold. Nevertheless, analysts advise investors to be aware of managing sizing and risk during this period.
Featured Images of Dall.E, Charts on tradingView.com
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