• Ethereum’s price recently rallied and reached the important resistance level of $2K.
• However, due to the prevailing selling pressure around this vital level, the price faced rejection and began consolidating.
• Currently, Ethereum has formed a bearish head and shoulders reversal pattern which suggests a bearish outlook for the price in the short-term.
Ethereum Price Breaks Above 100-day Moving Average
Ethereum’s price recently broke above its 100-day moving average and retested it during a pullback. This led to increased buying pressure resulting in a significant rise, reaching the critical resistance region of $2K.
Price Fails to Break Resistance at $2K
However, due to the prevailing selling pressure around this vital level, Ethereum’s price faced rejection and began consolidating. Notably, the $2K zone aligns with a prior major swing in Ethereum’s worth, making it an incredibly strong resistance barrier.
Bearish Head & Shoulders Reversal Pattern Formed
Analyzing Ethereum’s 4-hour timeframe chart reveals that momentum of the rally has weakened significantly and a bearish head & shoulders reversal pattern has been formed. This further supports a bearish outlook for the price in the short-term and could lead to minor rejections at or below current levels.
Price Supported by Ascending Trendline
Fortunately for buyers, Ethereum’s price is currently supported by an ascending trendline (indicated in green) on its 4-hour chart. If this trendline holds strong as support then there could be another attempt made at pushing past $2K again soon.