Ethereum, the second-largest cryptocurrency by market cap has seen a decline in price since July, and even though it did make some ground in mid-September, it could not hold its position and the price declined further. At press time Ethereum was trading at $184.57, seeing a minute climb of 0.64% on the 24-hour price chart.
12-Hour Price Chart
On the 12-hour price chart, Ethereum formed a descending triangle characterized by higher lows at $222.44, $199.82 and $193.40. The descending triangle had a constant baseline of $160.47. The formation of the descending triangle pattern is considered bearish as a breakout often takes place in a downward direction.
The EMA-Ribbon has been acting as support since 25th October but given the descending triangle formation, the pattern might reverse in 4-6 weeks and start acting as resistance once the price breach the pattern.
RSI indicator suggested that even though buyers had an upper hand in the market, there is strong resistance at 62.65 which the altcoin has breached only thrice in the last 6 months. So, we might observe a trend reversal once the altcoin touches that mark.
MACD indicator remained bullish since the bullish crossover on 25th October, but the dip had started and once Ethereum breaches the descending triangle, bears might take control.
Ethereum has maintained a bullish stance in the short term, but the formation of a descending channel on the 12-hour price chart suggested a reverse trend in the next 5-6 weeks. Major technical indicators suggested similar trend reversal in the long term even though they looked bullish in the short term.
A Computer Science graduate, Prashant focuses on UK and Indian markets.