Blue line-neckline
Red lines- shoulders
Ethereum price is trading around $1,590. Price has held support at $1,445 and bulls try to push price higher towards the first important resistance at $1,720. In the short-term we observe a potential head and shoulders pattern with the recent low defining the important neckline support. This neckline support is key support for the short-term and found at $1,420. A beak below this level will activate the pattern and provide a bearish signal. The head and shoulders pattern target is at $840. Currently we support price is forming the right hand shoulder. The neck line is the line of defense for bulls.
