Ethereum Price Broke Out Of Descending Channel, What’s Next?

Ethereum price has been trading within a descending trend line, which is a sign of a downtrend. Over the past 24 hours, the price of Ethereum has been different as the coin is up 6%.

At the discretion of the coin, it broke outside the descending channel.

Over the past week, the price of Ethereum has lost more than 7% of its value. Buyers entered the market, which helped Ethereum climb on its chart.

Although the buyers are trying to return, the sellers continue to drive the price action on the intraday chart.

$1,400 remains a tough resistance area for Ethereum price. A breakout from the aforementioned support line will help ETH to reconsider the next price ceiling.

The technical outlook for Ethereum remains bearish at the time of writing. The Bitcoin price recovery has helped the major cryptocurrencies accelerate their pace over the past 24 hours.

Ethereum Price Analysis: 1 Day Chart

Ethereum price
Ethereum is priced at $1,340 on the 1-day chart | source: ETHUSD on TradingView

ETH is trading at $1,340 at the time of writing. In the last 24 hours, buyers helped the currency break the descending trend line.

The immediate and strong resistance remains at $1,400. The altcoin has struggled to break this level for the past two weeks.

Once the $1,400 mark is broken, Ethereum could attempt to trade near $1,700. On the other hand, a drop from the $1340 price tag would push ETH to $1,100 and then to the $1,000 level.

The previous trading session for Ethereum was green, which indicates an increase in the number of buyers.

Technical Analysis

Ethereum price
Ethereum depicts a decrease in buying power on the intraday chart | source: ETHUSD on TradingView

On its chart, ETH was trying to recover. However, buyers remain low at the time of writing. Technical indicators are pointing towards bearish expectations.

The RSI was less than half of the line, which also indicates that there were fewer buyers than sellers.

Ethereum price was below the 20-SMA line, which indicates lower demand. This also means that the sellers were driving the price momentum in the market.

Ethereum price
Ethereum sell signal visualized on intraday chart | source: ETHUSD on TradingView

Other ETH indicators also showed that sellers were in control of the market at the time of writing. The demand for the coin must rise until the coin touches the next resistance mark.

Moving average convergence divergence indicates price momentum and overall price action. The MACD has seen a bearish cross and formed red histograms at the time of writing.

This reading is related to the sell currency signal. Chaikin Money Flow displays capital inflows and capital outflows over a given time period.

The CMF was less than half the line and this indicates low capital inflows, although there is a slight rise in the index.

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