Ethereum Four-Hour Time Frame Shows Bearish Trading Outlook

The Ethereum four-hour time frame shows that the altcoin is bearish in a short-term and medium-term trading outlook as we are about to see in the latest Ethereum news today.

The ethereum four-hour time frame shows that a head and shoulders pattern has been initiated and the daily time frame shows a bullish inverted head and shoulders pattern remains in the game. The decline in the broader crypto market has put Ethereum is an extremely vulnerable technical position and the ETH/USD pair is moving below the critical technical support. The altcoin has been struggling to rally away from the previous strong $180 support level after sharply reversing from the $1955 resistance level earlier this month.

Right now, the trading level is lower by less than 3.5 percent on a monthly basis but the ETH/USD pair is still trading around 35 percent higher since the start of the year. The $180 level is now the neckline of a bearish head and shoulders pattern which has a downside projection that could overtake the ETH/USD pair towards the $160 support level. The short-term technical indicators are bearish for the pair which the MACD indicator shows on the four-hour time frame signaling further losses in the near term.

The daily time frame shows there is a bullish inverted head and shoulders pattern that is still valid and despite the recent decline, the buyers have to defend the $160 level to stop the pattern from being validating. The cryptocurrency has broken below the 50-day moving average and increased the medium-term selling pressure on the altcoin. According to the sentiment data, the short-term sentiment towards Ethereum is quite bearish at 40% while the overall long-term sentiment towards the cryptocurrency is also bearish at 36%.

The four-hour time frame shows that the key technical resistance is located at the $180 and $194 level and the buyers have to rally the price above the $194 level in order to invalidate the bearish head and shoulders pattern. The Key technical resistance is above the $194 levels which are found at the $220 and $240 levels. The four-hour time frame is showing that the pair has a very strong short-term technical support around the $175 and $169. The key medium-term technical support for the pair is located at the $160.