Ethereum Price Breaks Down Down Channel, What’s Next?

The price of Ethereum has been trading in a downtrend, which is a bearish sign. In the last 24 hours, the price of Ethereum is different, as the coin has registered an appreciation of 6%.

As the coin appreciated, it broke outside the down channel.

Last week, the price of Ethereum lost more than 7%. The buyers entered the market, which helped Ethereum to rise on the chart.

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

The $1,400 price mark remains a strong resistance zone for the price of Ethereum. A break beyond the aforementioned support line will help ETH revisit the next price ceiling.

The technical outlook for Ethereum remains weak at the time of writing. Bitcoin’s price recovery has helped major altcoins pick up momentum in the past 24 hours.

Ethereum Price Analysis: One Day Chart

Ethereum price
Ethereum traded at $1,340 on the intraday chart | Source: ETHUSD on TradingView

ETH was trading at $1,340 at the time of writing. Over the past 24 hours, buyers have helped the coin break out of its downtrend line.

Fast and strong resistance remained at $1,400. The altcoin has struggled to break through that level in the past couple of weeks.

Once the $1,400 mark is broken, Ethereum could try to trade towards $1,700. On the other hand, a fall from the $1,340 price mark will push ETH to $1,100 and then to the $1,000 level.

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

Technical analysis

Ethereum price
Ethereum shows a decline in buying strength on a daily chart | Source: ETHUSD on TradingView

On the chart, ETH was trying to recover. However, at the time of writing, buyers have remained low. Technical indicators pointed to a bearish outlook.

The relative strength index was below the halfway line, indicating that buyers were less than sellers.

The price of Ethereum was below the 20-SMA line, which indicates low demand. It also means that sellers were driving price movements in the market.

Ethereum price
Ethereum sell signal on one day chart | Source: ETHUSD on TradingView

ETH’s other indicators also showed that sellers were in control of the market at the time of writing. In order for the coin to hit the next resistance mark, demand for the coin must increase.

The divergence of moving averages shows the momentum of the price and the overall price action. MACD has spotted a latent crossover and generated red histograms as you write.

This reading is related to the selling mark for the coin. Chaikin’s cash flow shows capital inflows and capital outflows over a period of time.

CMF was below the halfway line and points to lower capital inflows, although it has increased on the indicator.

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