FX.co ★ Ethereum breaks down towards $1,300.

Blue line- neckline support

In previous posts we warned traders that Ethereum was most probably forming a head and shoulders bearish pattern and a break below $1,500-$1,450 would accelerate selling and provide a new bearish signal. Over the weekend price has clearly broken, back tested and got rejected at the blue neckline. This was once support and is now key resistance. Price is now under pressure and we are looking for a move lower towards $1,000. The head and shoulders pattern target is at $850. However our first target and next important support is at $1,200-$1,180. Short-term trend remains bearish.