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The Ethereum (ETH) bears are losing momentum as the bulls enter to push for a reversal. This week, the number of short films reached the historical maximum. The last time it happened, we saw ETHUSDShorts entering a downward trend. Likewise, when it reached a record low around August last year, we saw an uptrend and the price of Ethereum (ETH) started to fall shortly after its historic high. The markets inversion of phase in points when one of the two sides becomes too comfortable. The bear market for a year has made the bears fairly confident. In fact, in recent weeks, we have witnessed an unprecedented risk in selling, which bears witness to the fact that the bears have become too confident and complacent.
The ETHUSDShorts chart also shows that CSR has encountered historical resistance and has already taken a turn for the downside. It would not be surprising to see the number of shorts drop dramatically from current levels. That said, it's too early to say that this is the end of the bear market. We have long been waiting for an upward correction and we will do it. However, this does not mean that the price can not decrease again to reach a new around the beginning of 2019. The probability of a reversal from current levels is very high and the price of Ethereum (ETH) should increase aggressively in the weeks to come. A strong inversion from current levels will probably be fueled by a short compression that will see the bearish resolution end up crushed in the short term.
Ethereum (ETH) is forming what appears to be an inverted head and shoulders on the 4H chart for ETH / USD. This model is the only shot that Ethereum (ETH) must organize a comeback. If this fails to come true, we may see the price fall further without first correcting the upside. The RSI in the 4H period is not in an ideal position for an aggressive increase towards $ 125. However, we believe this growth will take time and should be completed after mid-December. After this climb, we will again see the price go down to complete the right shoulder of the IH & S training. Completion of the right shoulder and then the whole IH & S is what will push Ethereum (ETH) towards a new test of its previous market structure that is now broken.
This is a move we've seen in the past. Both Bitcoin (BTC) and Ethereum (ETH) are expected to rise to their previous market structures for a new test. Most likely they will be rejected and the price will fall again. It should be noted here that the breakdown of the market structure has significant consequences in the graph analysis. Now that Ethereum (ETH) has broken its market structure, it is unlikely to break above it soon because that structure will now act as a resistance. That said, ETH / USD is due for a recovery that we will see in the coming weeks.
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