In our previous Ethereum analysis ETH Bulls Fighting Back! Bearish Pattern Invalidated. What Next? we warned our readers that despite the current bullish rally in the Ethereum price, the Altcoin is still currently trading in the bearish territory.
We also pointed out the key $1,400 level as the region that must be broken before Ethereum can really become bullish again. As far as the ETH price contiues to trade below this $1,400 resistance level, there is a very high probability that we might see the bears contiue to fight this move higher in Ethereum and try to stop it.
Well in this ETH TA, we will be painting an even better picture for you to help you understand why we are currently bearish on Ethereum and why we think the Altcoin sell-off might not just be over yet!
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Is This ETH Really A Bullish Rally Or A Retracement?
January as been good for Ethereum so far! We have seen the Altcoin bounce from a multi-month sell off and attempt to begin a new bullish surge.
However, the question traders are asking is “have we gotten to the bottom of the market or is this a bullish fakeout before the sell off resumes?”
Well, while a lot of analyst might be screaming buy..buy..buy, we would like to point out a key pattern many as negleted to see curretly forming on the 4-hour timeframe.
This Pattern is the Asceding Channel pattern and we can see Ethereum respecting it!
Ethereum Ascending Channel Pattern
The image above is a clear example of what this Ascending channel pattern could look like once completed. And once you compare this image with the current price action on the Ethereum 4-hour timeframe, you immediately begin to see why we are reluctant to scream buy..buy..buy like the rest of the crowd.
In the coming days, we will be keeping a close eye on this bearish pattern to see if the ETH price will continue to respect it. If the bulls cannot break through this key pattern, this would be a sign to be weary of this current rally up in Ethereum.
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