Ethereum investors are currently faced with a common dilemma. With Ethereum price down 35% from its recent highs of $4,062, the question now is, ‘Can ETH kickstart a bullish reversal or will the coin bottom at $1,600.

The current price of Ethereum (ETH) is $2,657 — it has risen 0.41% in the past 24 hours, but is down 16% in the last 7 days. Ethereum chart reveals an interesting story and both bulls and bears will have a rough choppy ride, either way it goes.

On the Daily timeframe, the Ethereum chart has formed an inverted Head-and-Shoulder pattern.

An inverted head and shoulders pattern is a technical analysis pattern that predicts a potential trend reversal in a downtrend. This pattern is formed when an asset’s price creates a low (the “left shoulder”), followed by a lower low (the “head”), and then a higher low (the “right shoulder”).

Ethereum might drop to $1,600 in a bid to complete the right shoulder of the pattern before a reversal happens. However, this is still not fully indicative of an Ethereum reversal as the price would need to break the neckline ($4,000 resistance). If it does, There will likely be a retest, before a run up to $7,300.

When zooming in, one notices a different sentiment on the 4-HR timeframe.

Here, the Ethereum price chart shows an ascending triangle, with prices currently around the support trend line. Ethereum might hover around the support before bouncing up. Still, the $4,000 resistance remains valid, and all bullish momentum will be tested at this level. The support is $1,600, and if Ethereum can close outside the trendline on the 4HR chart, it could definitely touch the $1,600 zone.

On the 1HR chart, Bulls will need a catalyst to effect a jump up. A series of lower highs and lower lows have sentenced Ethereum outside the trend line. The area of interest is the $2,500 to $2,100 zone. If the bears can prevail here, Ethereum will slide down to $1,600 before any hope of a reversal happens.

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