Cryptocurrency Analysis

[IFX_Selena]

Ethereum price decline activated head and shoulders bearish pattern

Ethereum has broken below the support of $1,720-$1,700. Price has activated the head and shoulders bearish pattern with target of $1,500. Price has moved as low as $1,648 today but it is now bouncing towards the broken support which is now resistance.



Green line - support trend line broken

Yellow lines - Head and shoulders pattern

Red line - resistance

Red rectangle - neckline support

ETH/USD is bouncing towards the neckline which is now resistance. This is an important back test of the break down. A rejection at $1,700-$1,720 will open the way for a move for a new short-term low below $1,648. The head and shoulders target is at $1,500. Major resistance is at the red trend line at $1,827. As we explained in previous posts, as long as price is below this level Ethereum is vulnerable to a deep pull back.





Alexandros Yfantis
Analytical expert
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