Ethereum is trading at $1,802 area in a bullish trend as price is making higher highs and higher lows. Bulls need to be cautious as price is trading very close to key support trend line at $1,775 and at $1,720 we also find the neckline support of a Head and Shoulders pattern.
Red rectangle - neckline support
Red lines - Head and Shoulders pattern
Blue lines - expected size of downward move if price breaks below the neckline
Price so far respects the upward sloping trend line support. As long as price is above $1,777 I do not think bulls have to fear anything. Resistance is at recent highs at $1,900-$1,920 area. Breaking above this level will open the way for a move towards $2,030 and higher. We also observe a potential Head and Shoulders pattern. We are now possibly in the formation of the right hand shoulder. If price breaks below the red rectangle support area where we find the neckline of the pattern, then bearish formation gets activated and our target will be at $1,500. So bulls do not in any way to see price break below the red rectangle support area at $1,710-$1,720.
