Ethereum (ETH): Forecasting Possible Reaction to This Breakout

Ethereum witnessed a double-digit fall within the previous ten days, following an anticipated dip from its upward channel and supply zone. The drop beneath the Exponential Moving Average ribbons has formed a somewhat conducive atmosphere for sellers.

Meantime, the resistance at $1,337 might reject upside price actions and open the road for a sluggish phase. While publishing this blog, Ethereum changed hands at $1,311.50.

Ethereum Daily Chart

The leading altcoin renews its bearish strength after breaking bellows an ascending trough of the daily chart. Consequently, Ethereum lost more than 30% of its price between September 12 and 21 while forming a downward channel.

The latest bounce back from the support at $1,242 triggered a buying comeback. However, Ethereum encountered recovery hurdles at the ceiling of $1,337. A possible closing beyond the level could clear the roads for an essential revival in the upcoming sessions.

Nevertheless, the latest higher price rejection might put Ethereum in a dicey condition. The price plateaus at the resistance at $1,337, and reversals from this mark might see the alternative token retesting $1,280 – $1,242 in the coming sessions. Meanwhile, a break beyond $1,337 would confirm an entry trigger. Such developments would have potential targets of $1,378 – $1,440.

Reasoning

The RSI (Relative Strength Index) battled for recoveries beyond the resistance at 41 within the past ten days. A sustained action beneath this mark might support sellers to maintain their edge. Buyers should watch for breaks beyond 50 to identify massive comeback chances.

Moreover, the MACD (Moving Average Convergence Divergence) still depicted a selling superiority. Furthermore, a possible bullish cross in the upcoming session might renew some buying hopes.

Final Thought

Ethereum’s price action has revealed opportunities for sellers/buyers, considering the resistance barrier at $1,337 and the weak indicator readings. Potential targets would stay as mentioned above. Lastly, ETH fans should assess Bitcoin’s trends. That’s because Ethereum shared a staggering 80% monthly correlation with BTC.

Bitcoin struggled with bearishness during this publication. The leading digital coins lost more than 1% within the previous 24 hours to trade at $18,887.44. Also, the alt market remains downbeat, and more downsides can emerge in the upcoming sessions.