Ethereum Bears Anticipate An 8% Price Correction As It Falls 100-Day SMA.

Ethereum Bears Anticipate An 8% Price Correction As It Falls 100-Day SMA.

2021-12-17 | Daniel Smith

Ethereum Bears Anticipate An 8% Price Correction As It Falls 100-Day SMA.

On December 17, the price of Ethereum fell below the 100 Simple Moving Average (SMA) around $3,720, indicating a likely negative outlook. According to the declining parallel channel chart pattern, Ethereum might decrease by 8%. To debunk the negative forecast, ETH would require to break through the 100-day SMA. The price of Ethereum might fall below $3,515 in the near future On the daily chart, ETH is trading barely over the middle border of the falling parallel channel, at $3,777. A falling parallel channel is a substantially negative chart pattern that indicates that the price of an asset will tend to decrease as long as it stays inside the constraints of the falling channel. The falling channel chart pattern for ETH predicts an 8% drop from the present price to the channel's lower threshold of $3,515. The downward sloping moving averages and the Relative Strength Index (RSI) indicator's position at 41.53 indicate that Ethereum is solidly in the clutches of the bears, emphasizing this gloomy picture. Furthermore, the Moving Average Convergence Divergence (MACD) indicator's downward trajectory lends validity to the negative ETH price thesis. Daily ETH/USD Chart btc

ETH/USD 1 DAY PRICE CHART; SOURCE - COINMARKETCAP.COM

On the plus side, the bearish hypothesis might be demolished if the ETH price breaks through the immediate barrier around $3,920, which is hugged by the 100 SMA. If this occurs, Ethereum's price may be able to reverse the declines that occurred on December 1st by bursting through above the top border of the current cha;rt pattern at $4,117. Any additional advance, though, might be hampered by stiff opposition from the $4,430 level and the $4,337 level, where the 50-day SMA is located. Ethereum bulls would require market support to surmount these obstacles, which might drive the ETH price higher to the apex of the falling parallel channel around $4,840, following which a push to explore fresh values over $5,000 would be the following sensible decision. The MACD is beyond the zero line in the positive area, lending confidence to this bullish forecast.

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