Ethereum’s price was undergoing a consolidation period at press time, with the altcoin having lost 31% of its value in September after dunking for almost four straight days. After several recovery efforts, the coin’s value stood at $182.70 with a market cap of $18.16 billion, as it noted a loss of almost 4% in its value over the last 24 hours.
The long term charts for Ethereum painted a pleasant picture as a breach in the bullish pattern appeared imminent.
12-hour
Source: ETH/USD on TradingView
The 12-hour chart for Ethereum suggested the formation of a descending channel. The pattern extended along with the lower highs of ETH at $195.83, $187.58, and $177.06, and lower lows at $181.91, $177.38 and $168.39. The price action was contained within the pattern and has lost almost 13% of its value. The volume resonated with the dipping price and with the breach of this channel, a spike in its price could be observed.
The moving average 50 was dominated by the moving average 100. However, due to the averages aligning above the candlesticks, the market was extremely bearish.
Source: ETH/USD on TradingView
The MACD indicator highlighted a bearish market as the MACD line rested under the signal line after a crossover. The negative momentum appeared to be growing. The Relative Strength Index was heading towards the oversold zone, marking a bearish market.
Conclusion
Ethereum’s dropping price might be saved with a breach of the descending channel. However, the bearish hold appeared dominant in the market.
