Ethereum price analysis: Eyes bullish breakout

John Isige
John Isige FXStreet
  • The crypto market could end the year in losses as crypto continue to deflate.
  • Ethereum price trades lower lows and lower highs within a descending channel.
  • A break from the channel resistance to see gains increase considerably.

It is probable that the crypto market will break its end of year trend that saw digital assets surge considerably for the last three years since 2015. Ethereum price, Bitcoin price, and other assets have usually performed better in the last month of the year. However, the current market trend at the moment suggests that cryptos will close the year before recovery begins.

At the time of writing, Ethereum can be seen trading within the confines of a bear channel on the hourly timeframe chart. The price, which is exchanging hands at $107 broke the mid-channel support at $110 during the Asian trading hours on Wednesday.

Ethereum is still trading below the moving averages. Likewise, the short-term 100 SMA keeps grinding further below the 200 SMA (1-hour). It means that the asset will continue to grind southwards as is the path of least resistance. The upside is host to various hurdles at the 100 SMA currently at $109.36 and the 200 SMA at $113.14. ETH/USD buyers reclaim the support at $110 in order to overcome the descending channel support.

The bulls are still present, while their buying power is limited, it is likely that they will be able to defend the short-term support at $105. Another support for Ethereum lies at $100. The Relative Strength Index (RSI) at the same time range touch shoulders with the oversold but is pointing upwards at the moment to show that buying pressure is rising. However, the MACD is still locked in the negative zone to show that the sellers are present too and will make recovery a difficult task in addition to risking further breakdown heading to $100.

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