Ethereum Price Analysis: ETH/USD sees big head and shoulder formation under construction
- ETH/USD one of the standout under-performers on Friday, down as much as 3%.
- Eyes on the possible formation of a head and shoulders pattern.
Ethereum price on Friday is a notable under-performer in the session. ETH/USD into the second part of the day is seen nursing losses of around 3%. The pressure remains to the downside following a breach of a key ascending trend line yesterday.
ETH/USD price action had been supported by an ascending trend line from 15th December, right up until it was breached on 10th January. Via the 4-hour chart view, a formation of a head and shoulders pattern can also be eyed. The left shoulder is complete, with the head under construction, the price heading back towards the neckline, at $115.
Immediate support can be eyed around $125-124, a breach here will expose the neckline observed at $115. Should this play out to the textbook, then a bounce may come into play at $115, sending the price back north, to form a right shoulder. Either way, a breakout below of $115, could see a full reversal of the December gains. ETH/USD could be forced back down to $82, the December low area.
ETH/USD 4-hour chart
Author
Ken Chigbo
Independent Analyst
Ken has over 8 years exposure to the financial markets. He started his career as an analyst, covering a variety of asset classes; forex, fixed income, commodities and equities.
