Ethereum is out of Bearish Descending Channel. What to Expect?

Analysts and experts are still wrapping their heads around the fall of Ethereum after the Merge. Now, Ethereum is out of the bearish cycle, so what can you expect from it?

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Jay Crypto

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Last updated Sep 27, 2022 at 01:57 AM

Posted Sep 27, 2022 at 01:00 PM

Ethereum is out

We will explore how long Ethereum has been trading in a bearish descending triangle. Now that Ethereum is out, we will try to predict the trajectory of the asset in the coming days. Without a delay, let’s get going!!!

What’s Happening In the ETH Ecosystem?

Vitalik Buterin, the co-founder of Ethereum (ETH), has commented on the future of the dominant altcoin. During his virtual attendance at the 2022 Messari mainnet event, Vitalik stated that after a successful transition to Proof-of-Stake, the surge was the next step. However, the crypto head had brought up the rise previously . Vitalik made a similar observation on the day of the Merge. Vitalik, though, seems to have gone into greater depth than he had at the "Merge Viewing Party."

Ethereum is out 2

Twitter

Vitalik stated that Ethereum was following its roadmap and that the rise had always been a part of its intentions. The surge, which attempts to strengthen the Ethereum network, won't happen all at once like the Merge, according to Vitalik. He also stated that scaling Ethereum was still a goal of the project. Additionally, Vitalik acknowledged that as Ethereum moves through the spike stage, transaction volume might somewhat decline.

Let’s look at the price performance of Ethereum.

Price Performance of Ethereum

A sinking trendline has been present in the price of Ethereum, which is a bearish sign. The price of Ethereum has not changed much during the past day.

Data from CoinMarketCap suggests that the currency broke outside of the falling channel as it gained value. The price of Ethereum dropped by more than 7% in the previous week. Since buyers have started to enter the market, Ethereum's chart has risen. The sellers are still in control of the price action on the one-day chart, despite attempts by buyers to make a comeback. The price of Ethereum continues to face significant resistance around the $1,400 level. The aforementioned support line will help ETH review its next price cap if it is broken through.

Ethereum is out 3

CoinMarketCap

Let’s analyze the price of the asset using technical indicators to know whether Ethereum is out or not. Ethereum Price Analysis 

The price of ETH was around the $1,340 price mark. The coin has been able to break outside of the downward trendline during the last 24 hours thanks to the purchasers.

At $1,400, there was still significant and immediate pushback. Over the past few weeks, the alternative currency has had trouble breaking over that barrier. When the $1,400 barrier is breached, Ethereum may try to trade near $1,700. On the other side, if the price of ETH drops below the $1,340 threshold, it will first reach $1,100 and then $1,000.The last Ethereum trading session was green, indicating an increase in buyers.

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TradingView

Let’s look at the technical indicators:

Rationale Behind It 

ETH was trying to make a comeback on its chart. At the time of writing, however, the number of buyers has remained modest. Technical signaling has suggested a negative prognosis. The Relative Strength Index was below the half-line, indicating that there were fewer buyers than sellers. The price of Ethereum was below the 20-SMA line, indicating minimal demand. Additionally, it implied that market price movement was being driven by sellers.

Other ETH indications have also shown that at the time of writing, the sellers were in charge of the market. The coin must experience an increase in demand to cross its next resistance level. The convergence of moving averages Divergence reveals the overall price activity and price momentum. At the time of writing, MACD had produced red histograms and had a bearish crossover.

This reading corresponds to the coin's sell signal. The Chaikin Money Flow graphs the capital inflows and outflows over a specified period. Despite an increase in the indicator, the CMF was below the half-line, indicating minimal capital inflows.

What’s Next?

The top on-chain company also revealed that deposit contracts on ETH 2.0 have increased. The Total Value Staked at the time of this writing was 13,937,399 ETH, which was an All-Time High (ATH).  Most ETH investors would anticipate that the recent on-chain performance will result in an improved price momentum. It might be premature to anticipate this portion, though. Nevertheless, a course change is always possible.

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