Ethereum: Cool-off after breakout is not a sign of rally
- ETH breaks out of a descending trendline on the long term.
- But bulls are unable to capitalize on the breakout, a rally cools off.
Ethereum, the third largest cryptocurrency by market capitalization, was able to break out of a key descending trendline resistance on the long-term chart and rallied a bit after the breakout, only to cool off as the rally fizzled out and bulls went on year-end holidays.
ETH/USD is down about 0.3% on the day at $139.34 and trading in about 4% range in weekend driven lower volatile trading. On the daily chart, this erstwhile second largest crypto broke out of a key descending trendline last week and managed to carry on the momentum for two days, only to cool-off later in this week, in a sign that bulls were not willing to carry on their positions in the year-end Christmas holidays.
On the 720-minute chart, the crypto is stuck in a parallel channel that will cap any rallies around $150-160 mark and so will the Bollinger bands whose upper band is at $149 currently. As long as bulls are below these levels, it won't be a cake walk for them to carry on the momentum built in the last few weeks.
ETH/USD daily chart:
ETH/USD 720-minute chart:
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Author
Manoj B Rawal
Independent Analyst
Manoj B Rawal, financial markets professional with about 11 years of experience in writing, editing and advising on stocks, currencies and fixed income.
