A descending channel appears to be forming in Ethereum (ETH) price. The price structure therefore remains bearish in the short term. Check out this analysis.
Ether (ETH), in the middle of the range $1150 and $1250
The weekend promises to be rather quiet for Ethereum. After the bounce off the $1250 support, the price is currently in the middle of the $1150 and $1250 range. These are two crucial support and resistance levels. Thus, it could be that the price, after touching the support, will seek to reach the resistance. However, the upper part of a descending channel is a hurdle for Ethereum buyers. Indeed, by colliding on this part, the sellers could push the price, again towards the lower part of this channel.
We can then consider a downward reaction of the price, facing this oblique resistance. If so, then it could be that the ether is moving back to the middle part of the channel. Then, this median aligns with a support. This is the $1150 zone which may once again send the price back up. On the other hand, it could also be possible that the price breaks through the upper part of the channel. Indeed, Ether (ETH) is currently trading close to this oblique resistance. However, it will probably be a “ false break “, because just above, there is another resistance. Thus, in all cases, it will be necessary to favor bearish scenarios.
More drop to come
After two days in the range, the price ran into this oblique resistance today. The sellers reacted immediately, driving the price down to $1180. Currently, Ether (ETH) is moving around this area. This immediate downward price reaction demonstrates the relevance of this channel. Additionally, a bearish pattern formed between December 17 and 22. This is the scenario where the price makes two ranges, the second of which is above the first. A bearish pattern that we recently saw before the fall of ETH after the collapse of FTX. Thus, we can envision Ether falling below $1150. This objective aligns with the median line of the canal.
However, the support at $1188 should not be overlooked. Indeed, bulls could place their buy orders there to initiate a short-term rally on Ether (ETH).
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