Ethereum ETHUSD closed yesterday below its Neckline in what seems like a Shoulder-Head-Shoulder (SHS) pattern although the left shoulder is a bit low. Ideally both shoulders should be roughly the same height.
Nevertheless, when ETHUSD broke below the Neckline a downtrend has been confirmed supported by RSI also closing below the 40 threshold i.e., in negative sentiment.
The lower rising trendline will offer some support but the SHS pattern indicates we could see a sell-off down to around 1,370.
(As a rule of thumb, the potential target is the price difference from the Head to the Neckline and subtract that from the Neckline break out price. Illustrated by the two vertical arrows). That price level is also around the March trough.
Support at around 1,703
For ETH to reverse this bearish outlook a close above 1,930 is needed i.e., above the right shoulder.