Interestingly, following the completion of the Head and Shoulders pattern on the 4-hour chart, the Ethereum price had experienced a large bearish candle, which ended up taking out the neckline. Once this was done, it was a confirmation that the altcoin was at risk of more downside.
Such a crash from the neckline would send the price crashing back down below $4,000, since there isn’t much demand there. The analyst places targets around $3,850, calling out a range between $3,700-$3,900 during this time, which is all up to where the neckline is measured. “This level also lines up with the last major resistance zone, so it’s a natural magnet,” Melikatrader said.
