Ethereum Price Prediction As Bull Trap Puts $ETH At Risk of 12% Drop
The second week of December has been highly volatile for the crypto market, as the two leading cryptocurrencies faced intense overhead supply. This indecisiveness could be triggered by the speculation surrounding the CPI inflation and Fed rate decision. Thus, the ETH price witnessed storing selling pressure which led to a breakdown below key support threats for further fall.
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- A failed attempt to break the $2400 set the alarm to the ETH price for a bearish reversal
- The rising price may face intensified supply at $2400.
- The intraday trading volume in Ether is $12.2 Billion, indicating a gain.
On December 5th, the Ethereum price recovery gave a bullish breakout from the resistance trendline of a long-coming resistance or wedge pattern. This chart pattern carried a steady and low recovery for over a year, and therefore an upside breakout is needed.to recuperate the exhausted bullish momentum and start a directional trend.
However, with the increasing supply pressure, the Ethereum coin price reverted from $2385 and reentered the wedge pattern. This breakdown undermined the last breakout and marked it as a fake breakdown.
By the press time, the ETH price was trading at $2189 with an intraday loss of 1.56 %. If the selling momentum persists, the bears could attempt a breakdown immediately below $2133.
Should this occur, the selling momentum would accelerate and could tumble the prices 12% to hit $1916.
ETH Total Liquidations Chart
Amid the current uncertainty, the Ethereum coin has witnessed a significant surge in long liquidation on December 12th. According to data from Coinglass, the market experienced a substantial amount of long liquidations of $87.74. This sudden exit of long traders is likely to introduce more sell orders into the market, potentially reinforcing the ongoing correction.
- Bollinger Band: A midline of the Bollinger Band indicator provides dynamic support to BNB.
- Relative strength index: The daily RSI drop below 60% reflects weakness among trades.
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